Why gas prices are so high?
Why gas prices are so high?
This is one question that bugs majority of the vehicle owners and the regular homemakers out there.
And the rates these questions are being asked right now seem to intensify weekly every time a new round of petrol prices is noted in the market.
Experts have agreed that there will be a major oil shortage that will happen sometime in the next 10 years and with that the price of a barrel could move past $200. Now the question that still begs to be answered is; why gas prices are so high?
One reason that can be forwarded is the fact that need right now far outpaces the current supply. The growing economies of today plus the need of the big players like China and the USA has pushed the supply to dwindle at a fast level.
Others point to the move of some oil producing countries to cut production amidst the difficulties being faced by the world right now.
Some observers and policy makers in different countries point to the taxes that are being imposed on oil and oil products as one of the reasons why the gas prices of today is so high.
But this reason that was pointed out pales in comparison to the much larger problem; that need outpaces the current supply.
Whatever the reasons may be, some things need to be addressed and some things need to be done to avert a crisis and to start people from asking, why gas prices are so high.
There’s a lot of speculation being done on the crude oil commodity markets, though this week has been a HUGE reversal in the trend. Long story short, it’s been a mix of outsized demand, terrorist fears, weather patterns and plain ol’ speculation. Really, the prices haven’t been echoed like they should be on many economies.
I live in America, and one of the Saudi gas hogs recently talked about how the price of oil should actually be a lot higher in the U.S. looking at the raw costs involved with refining it. China’s been throwing us off with their subsidizing which has really brought a train wreck to their stability, and there are just a lot of people getting lost in the business.
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And if you think the new oil fields in the US is going to drop the prices, wrong. We won’t even see oil from the offshore fields or new Alaskan fields for another 3 or 4 years in the least. It was just a political stunt to quiet the population.
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