The price of oil per barrel is currently approaching all times lows across the globe. Oil is sold at a fixed price across the international markets. Taxes and subsidies have been a large factor in this as fluctuations range from $0.20 to $5.64 per gallon. This article compares oil prices from different parts of the world (adjusted with exchange rates in US dollars) to show how the oil industry is currently struggling. Llanteg, Wales has the highest price of oil at 103.9 pence per liter, which equates to $5.64 per gallon. On the other hand, Minsk, Belarus has the lowest price of oil at 11.10 rubles per liter or $0.20 per gallon. It's interesting to see how the price of gasoline changes depending on location, even within the same country. The price in New York City is currently $3.29, but on campus (at UDF) the price is $1.81 per gallon. Its very interesting to see what causes this variety of prices for the same product throughout all economies.
http://www.businessinsider.com/shocking-gas-prices-around-the-world-2016-3
The fluctuation is rather unnerving. Building on this, what's even more bothersome is that no efforts have been successful with OPEC, Venezuela or Russia. Though as of six hours ago, Venezuela and China are considering allowing Venezuela to borrow money in exchange for oil. While if passed, it could help, it is a sad reflection of the desperation that third world countries have found themselves in
ReplyDeleteI thought this article was very interesting to read and to see how much the price fluctuates from location to location. I have noticed this just this week that there are two gas stations in my home town and the price difference between the two was 15 cents. why are to stations in the same time have such a difference cause it would cost around the same price to have the fuel shipped in. I would be interested to see how much it cost to make 1 gallon of gas and to see how much of a mark up gas stations have.
ReplyDeleteI just wrote about an article similar to this and it's crazy how the oil and gas industry is different in different parts of the world. One reason I know the United States continues to change is due to the drastic temperature change this winter.
ReplyDeleteLooking into oil and the price all over the world is intriguing. The stock market has recently fluctuated based off the price of oil all over the world, but all over the world it is going in different directions. It makes it a hot topic to discuss on if the market is fluctuating based off the American price of oil or all over the world, and to also look at which countries oil prices has the largest affect of the U.S stock market.
ReplyDeleteIt is interesting to see how much higher it is in certain countries vs others. the fact that it is so low really helps out some businesses like airlines where they can save a ton of money on fuel costs. i thought it was interesting to see over break how the prices change from state to state. I saw that it did fluctuate not only from state to state but even different cities in states were higher than others.
ReplyDelete