Thursday, October 20, 2011

Gadhafi's death and the price of gas

We all know that the price of gas is based on future expectation. If the future doesnt look to bright for gas then the price will increase. If it seems as though the future of gas looks good, the price will go down and the people will go crazy. But since February of 2011 gas has been damaging towards our wallets when it rose to $3.98. That was the highest it had ever been since 2008. The price rose so high due to protests in Benghazi, just like the protests that were in Libya. Another factor that affects the price of gas is which countries produce the most gas and distribute it throughout the world. When the couontries that distribute the gas protest, that puts a hault on the selling of gas and causes the price to go up. When Libya protested, it ocurred over a period of months and that caused nations to use 60 million emergency barrels of gas(half of which came from the US). Now that Gadhafi is dead and Libya isnt protesting as hard as they were, hopefully the price of gas will slowly decrease as Libya reluctantly lowers the price of oil on the international market. Since Gadhafi is dead this also allows other countries to distribute there oil and profit, helping everyone out and especially the economy.

3 comments:

The Noah. said...

If the new libyan leaders get the gas under control, will they increase the price of it so they can build there country back up? what happens if they do?

CooperT said...

The only issue that comes to mind is who is going to take control? Whoever this person is what if they can't run the country and just cause more problems? If things don't go smoothly will our gas prices go back to rising? Could we fix all of these issues of relying on other countries for our oil by using more of the resources we have here in the U.S.?

jay paul said...

Very informative and worthy post. Thanks for the sharing such a precious updates with us.

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