Gas Prices
Why the price of filling up has gone down?
http://www.usnews.com/news/articles/2014/09/23/demand-drops-supply-surges-and-gasoline-prices-plummet
In the past, gas prices use to be around .99 cents and use to be very cheap. During the 2000s, gas prices have gone up a tremendous amount and became expensive as time had passed due to the weak dollar value and the war in Iraq. In 2004, gas prices, for the first time went up to $2 and many people were starting to complain and considered $2 expensive after a long time getting use to paying for $1 or below. Then in 2005, Hurricane Katrina happened and pushed gasoline prices to $3. In 2006 and beginning of 2007 gasoline prices have been going down $2 or under. At the mid-end of 2007 gas prices especially in Michigan went up to $3 or higher and then by the end, gas prices in Michigan went down around 2.89. Gasoline prices in places such as Mississippi and South Carolina were the lowest at 2.40. In February, 2008 gas prices across the United States went up to $3 due to the weak dollar value and started going up to $4. From July, 2008-January, 2009 gas prices have been going down from $4 to $1. Many people were really happy when gas prices were going down back to $1 since 2004-2005. Gas prices in 2009 have headed back towards the $2 mark but never went up to $3. In 2010, gas prices were starting to go up closer to $3 in places like Michigan. Then in 2011 gas prices have been going up for the second time about $4, since 2008 due to the unrest in Libya and in other Middle East countries. From 2012-2014, gas prices have been going up and down due to the price of barrel, in other words, oil prices. When oil prices go up, gas prices start to become expensive and when oil prices go down the price of gasoline goes down.
Summary:
Gasoline prices have been going down due to low demand and an increase in supply. Prices at the pump have been at the lowest levels in years, despite of global unrest. The Islamic State group and its fighters have seized oil fields, threatening oil supplies in major cites of Iraq and Syria. At the end of the summer driving season, demand drops and prices fall down usually after Labor Day. Refiners switch to winter fuel fix because it adds less expensive fuels, such as Butane. The Environmental Protection Agency allows refiners to switch to the winter-grade blend as air quality improves and summer heat dissipates. U.S. Oil Production plays a big role on gas prices which is why they have declined. The U.S. is helping to keep the global market covered with crude oil. Most of all, fuel-efficient cars have been heading down the road each year which also has a big impact on the price of gasoline.
Connections:
If oil prices go down and never go up in the next three months, then hopefully we might see a significant drop on gas prices about anywhere in the $2 range, just like back in 2009 and 2010. My personal reactions to this article is that this will not only help the economy but many people will be satisfied and feel much better if things go in the right direction. It has been long time seen gas prices around the $2 range and the lowest we have been seeing is about $2.89-2.99. My prediction from this article is that gas prices will go down in to the $2 range by the end of this year because many analysts say that in 20 states, gas prices has declined below $3 and they expect 30 states to be below $3. Also, the price of Brent crude oil which is the benchmark of calculating gasoline prices now stands at $96 a barrel which is down $115 a barrel in June and more than $120 two years ago. The economy is working on bringing in more crude oil to the market which means that we might see a 75% chance on prices getting lower and lower. The "U.S. is an over supplied market. Crude is available and crude is cheap, and it's going to become even more available and cheaper" because as China, Canada , and other countries from Europe-Asa explore, expand an implement, more oil is expected to hit the market. Americans are buying more gas branded credit/debit cards that would save them anywhere between 5-10 cents off. This shows how not only many people are saving money on gas, but demand also starts to decrease and pushes other oil companies for competing with each other, “Demand is expected to fall in the U.S. another 15 percent between 2014 and 2025. That is huge news.”
Biases:
The article uses, despite global unrest, prices at the pumps are at their lowest levels in years. I see this based upon gas prices declining after the summer driving season ends,demand starts decreasing and the supply starts to increase which means lower gas prices. Second, I found in the article on where it says crude is cheap. This refers to how Americans will consume more than 2 billion gallons of gasoline than ever expected from previous years. Third, as oil and gas boom, energy taxes fall, which shows how there so many gas stations and stores for customers to choose from. The new approach is if you have a gas station, you better make sure you have enough money from convenience stores to cope with, which means how your gas station will have a zero margin on your gas sales.
Alejandro Sanchez refuels his car at a gas station in Miami.
My ResponseIn the past, gas prices use to be around .99 cents and use to be very cheap. During the 2000s, gas prices have gone up a tremendous amount and became expensive as time had passed due to the weak dollar value and the war in Iraq. In 2004, gas prices, for the first time went up to $2 and many people were starting to complain and considered $2 expensive after a long time getting use to paying for $1 or below. Then in 2005, Hurricane Katrina happened and pushed gasoline prices to $3. In 2006 and beginning of 2007 gasoline prices have been going down $2 or under. At the mid-end of 2007 gas prices especially in Michigan went up to $3 or higher and then by the end, gas prices in Michigan went down around 2.89. Gasoline prices in places such as Mississippi and South Carolina were the lowest at 2.40. In February, 2008 gas prices across the United States went up to $3 due to the weak dollar value and started going up to $4. From July, 2008-January, 2009 gas prices have been going down from $4 to $1. Many people were really happy when gas prices were going down back to $1 since 2004-2005. Gas prices in 2009 have headed back towards the $2 mark but never went up to $3. In 2010, gas prices were starting to go up closer to $3 in places like Michigan. Then in 2011 gas prices have been going up for the second time about $4, since 2008 due to the unrest in Libya and in other Middle East countries. From 2012-2014, gas prices have been going up and down due to the price of barrel, in other words, oil prices. When oil prices go up, gas prices start to become expensive and when oil prices go down the price of gasoline goes down.
Summary:
Gasoline prices have been going down due to low demand and an increase in supply. Prices at the pump have been at the lowest levels in years, despite of global unrest. The Islamic State group and its fighters have seized oil fields, threatening oil supplies in major cites of Iraq and Syria. At the end of the summer driving season, demand drops and prices fall down usually after Labor Day. Refiners switch to winter fuel fix because it adds less expensive fuels, such as Butane. The Environmental Protection Agency allows refiners to switch to the winter-grade blend as air quality improves and summer heat dissipates. U.S. Oil Production plays a big role on gas prices which is why they have declined. The U.S. is helping to keep the global market covered with crude oil. Most of all, fuel-efficient cars have been heading down the road each year which also has a big impact on the price of gasoline.
Connections:
If oil prices go down and never go up in the next three months, then hopefully we might see a significant drop on gas prices about anywhere in the $2 range, just like back in 2009 and 2010. My personal reactions to this article is that this will not only help the economy but many people will be satisfied and feel much better if things go in the right direction. It has been long time seen gas prices around the $2 range and the lowest we have been seeing is about $2.89-2.99. My prediction from this article is that gas prices will go down in to the $2 range by the end of this year because many analysts say that in 20 states, gas prices has declined below $3 and they expect 30 states to be below $3. Also, the price of Brent crude oil which is the benchmark of calculating gasoline prices now stands at $96 a barrel which is down $115 a barrel in June and more than $120 two years ago. The economy is working on bringing in more crude oil to the market which means that we might see a 75% chance on prices getting lower and lower. The "U.S. is an over supplied market. Crude is available and crude is cheap, and it's going to become even more available and cheaper" because as China, Canada , and other countries from Europe-Asa explore, expand an implement, more oil is expected to hit the market. Americans are buying more gas branded credit/debit cards that would save them anywhere between 5-10 cents off. This shows how not only many people are saving money on gas, but demand also starts to decrease and pushes other oil companies for competing with each other, “Demand is expected to fall in the U.S. another 15 percent between 2014 and 2025. That is huge news.”
Biases:
The article uses, despite global unrest, prices at the pumps are at their lowest levels in years. I see this based upon gas prices declining after the summer driving season ends,demand starts decreasing and the supply starts to increase which means lower gas prices. Second, I found in the article on where it says crude is cheap. This refers to how Americans will consume more than 2 billion gallons of gasoline than ever expected from previous years. Third, as oil and gas boom, energy taxes fall, which shows how there so many gas stations and stores for customers to choose from. The new approach is if you have a gas station, you better make sure you have enough money from convenience stores to cope with, which means how your gas station will have a zero margin on your gas sales.
This blog is visually appealing and very interesting to read-Anu
ReplyDeleteVisually appealing but your biases needs more work. You need at least three biases.
ReplyDeleteYou did a great job with the summary, but need to work on the "connections" and "biases." Biases and slants are often subtle; you need to look carefully for them and explain where/how you see them. For the connections paragraph, you get a bit repetitive and need to integrate your quotes (they can't stand alone as their own sentence).
ReplyDelete