Oil & Gas Price Evolution

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What Moves the Oil and Gas Price?

Why are oil prices and gas prices so dramatically increased in the last view years? Oil and gas price will maintain the current level or rise in the next years because of the world economy, an increased demand on oil and its production costs, the gas demand, and the investment in developing alternative energy sources.

How long will the oil reserves last?

It is currently estimated that the oil reserves in the United States will last for 20 to 30 years, but this may or may not be accurate For example, since the first oil price shocks in the seventies, a many actions have been taken in order to reduce the consumption of oil and to reduce energy

The reality is, that the world oil demand
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The scarcity of oil offering but, together with the increased global demand, certainly play their part to the recent price increases on world markets. Only recently climbed the price of a barrel of crude oil to over 100 U.S. dollars, an increase to 120 dollars per barrel no longer seems excluded. The price of oil to the U.S. gas stations since 2004 is even more than double.

Semmler W. (2006) Professor of Economics and Research Fellow at the Bernard Schwartz Center for Economic Policy Analysis (SCEPA) of the New School in New York and Professor at the Center for Empirical Macroeconomics (CEM) at the University of Bielefeld stated, that at present, but the effect is another mechanism, with the functioning of modern financial markets has to do, the rise in oil prices: trade with oil derivates in the futures markets has increased in recent years gained importance. In these markets is already the demand of tomorrow traded. For example, traders anticipate what China is the future for oil to pay could be. The prices for derivatives in turn impact on the real prices.

Of course you can also offer temporary disruption of the price rise and a lot more than most other products. Cyclones, geopolitical crises, political unrest and strikes, influence the barrel price in the short term often dramatically. Economists say that the elasticity of

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