Essay Todays Rising Gas Prices

High desiel prices are a consequence of capitalism. As all fuel prices have been going up people are blaming the federal govenerment. They believe the president has influence of derterming the outcomes of tensions betwwen Israel and Iran. Some people blame incrased prices based on fears around the world. It all comes down to one thing to blame, capitalism. Calitalism can be great to an economic system because of its emphasis on efficienc and inbradible success rate at allowing those who control the means of production and resources to meet the demands of those with purchasing power. Capitalism is constantly evolveing and will impact the gap between current and future goals on oil prices.

Summery: Now you know that the rise in gas prices is because of three main factors, the price rising of crude oil, continues increase in internal regulations in the United States and the huge increased demand for the product in and out side the United States.

The consumption of the oil cause changes in the supply and demand. The United States produces 11 million barrels of oil every day. We are one of the biggest countries to have a big influence on the production and prices of the oil. The basic supply and demand theory explains that the if a product is produced more, the cheaper it should sell. If a country were to double the output of oil day, prices would fall and the Production is high, but the distribution of oil isn’t keeping up with the market. The United States builds an average of one oil refinery per 10 years. This is a net loss due to the fact construction has slowed down since 1970s. Since 1970s, the United States has 8 less oil refineries today. The reason why we are not oversupplied with cheap oil is because of the other countries’ higher net margin and the only operate at 62% of their capacity. Excess capacity is only there to meet future demand. With demand moving accordingly, oil prices will continue to be set mostly by the market — despite external players’ best efforts. (McFarlane)

Once upon a time Americans hopped into their cars on warm spring days and took long drives to admire the beauty of nature. Teenagers took joy rides around town to meet friends and rode from one “hot spot” to another. Those were the days when gas prices were affordable to the average American. Over the past few years, gas prices in the United States have been on the rise. What is causing the increase in gas prices?

As we continue to consume fossil fuels on a scale never seen in human history, we are faced with the nagging but not imminent question: what is going to happen when we run out? It’s the same question any addict asks themselves, and the way they respond can affect the rest of their life. It is impossible to forget 2008: gasoline rose to nearly $4 a gallon, the stock market plummeted, millions lost their jobs, and Americans and foreigners alike responded in a way that only the fear of spending more money can motivate.

Each time a person residing in the United States pulls up to a gas station to fill their tank it costs more money. This is particularly true of the past four years. Many focus the blame on the American Government but there are a multitude of factors causing gasoline prices to be so astronomically high. Middle eastern war, environmental precautions and government all seem to have a hand in the price we pay at the pump.

According to Singers(August 24,2017), ITEP’S (July, 2017), (July, 2017),(August 2011), and(December 2011), higher sales and gas tax in Connecticut have consequences and a solution proposed to reduce tax burden on low income family. Based on the readings and my understanding of this topic, I conclude that increasing sales and gas taxes in Connecticut to fix a budget crisis will be financially harmful to low income families and needs to be address with the new policy. Singer(August 24,2017), pointed out that, Connecticut legislators are deciding to increase the sales tax from its current level to 6.85 percent to fix a budget deficit, estimated to reach $3.5 billion in two years and improve state aid to towns. Based on Tax Foundation studies,

Inflation is the sustained increase in the general level of prices for goods and services in a county, and is measured as an annual percentage change. (Investopedia) During periods of inflation, the prices of products and services will rise. There are several reasons why an economy would see a rise in inflation. Decrease in supplies, corporate deciding to charge more, and consumer confidence are some of the reasons why an economy would see the inflation rate increase. Consumer confidence is when consumers gain more confidence in spending due to a low unemployment rate and wages being stable. Decrease in supplies is when consumers are willing to pay more for a product or service is that is slowly becoming unavailable due to a decrease in supplies. Corporate decisions are when the corporations basically decide

The demand of gasoline has increased steadily over the last twenty years. In 1981 the U.S. averaged 6.5 million barrels of gasoline consumption per day. By comparison, in 2004 the U.S. averaged 9.2 million barrels of gasoline consumption per day. For most of this time period, gas prices stayed relatively the same. This is because the U.S. refineries increased their production to meet the demand and maintain the equilibrium price. Also during this same time period worldwide demand for crude oil increased 27%. Crude oil producers also increased their production to meet the demand keeping prices the same.

I’m convinced that the Oil Industry is being controlled by a group of crooks who like to yank our chain by imposing high prices on oil at every turn. Then when they have sucked and squeezed every cent out of us, all of a sudden the crooks will have a decreased of a few pennies reflected at the gas pumps.

The U.S. was supposed to be the world’s new swing oil producer, able to nimbly open and close the taps in response to market forces, thanks to its bounty of shale fields.” In the past a barrel of oil has been one hundred dollars, recently it has dropped to thirty dollars. Though some wells can be profitable at low prices it puts a serious strain on the oil industry as explained in this article.

Gas prices have been decreasing in some states according to my research on google. Since there has been more oil found, we have more of a supply which means that the prices of gas will drop due to supply and demand. Now that we have more oil for gas, the supply has increased which means that even though demand is high, the prices are lower because we have that supply. It has been the lowest in years, dropping from about four dollars a gallon to about three and and a half. Even though this may seem like it isn’t important to the economy, it is because now more people can afford it so more money for the economy to make from its

The causes for WTI crude oil and its price changes are all about supply and demand. If consumers are trying to cut down on there use of oil because it is getting to expensive then the supply is higher then the demand therefor the price of oil will go down to try and get consumers to buy more oil and stimulate the oil trade. If a large amount of people are demanding oil and the supply cannot keep up with the demand then the demand is higher than the supply therefor the price will go up to slow down the trading of oil.

In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a loss of real value in the internal medium of exchange and unit of account in the economy A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index (normally the Consumer Price Index) over time.

According to Domm (2013), the author of the first article, apart from the unrest in Egypt, several other factors such as a plunge in the inventories of domestic crude oil could drive up demand and in the end trigger an increase in the price of gas. In the opinion of the author, although the problems facing Egypt (and Libya) have affected supply