Oil falls as refineries come back online
Gasoline prices are often in the news with fluctuations. However, the outlook seems to show that prices will be falling soon. The reason being more than a few refineries getting back to full production. With refineries such as Valero and McKee coming back online national production will increase and if the demand stays relatively the same we should see a drop in gasoline prices. Even though Forcados oilfields in Nigeria are still questionable if it comes back into full production again it will also take the strain off of demands. Gasoline is still showing the pattern of hitting an equilibrium. Fluctuations are inevitable, they are going to happen, but we are still maintaining a decent equilibrium price.
2 comments:
It would be amazing if oil prices began to go back to what they used to be. i really do hope that something can happen to make gasoline affordable. This has had a huge impact on Americans and no matter what happens we are still going to need to buy gas. It will always be a profitable business for any oil comapany.
According to economic theory of supply and demand, if there is an increase in supply, prices will fall (if demand is constant). THis being said, gasoline prices should be coming back down but they aren't. This could be due because we as consumers did not change our habits with the high prices. Oil companies saw this and figured out they could keep prices high, even with greater supply, because of our need for gasoline.
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