Business

Chris Cantell Discusses Business: US: Gas to peak at $4.15 a gallon but stay high
by Radka Konkolova

I think everybody knows the whole world is affected by increasing oil prices. This is just a consequence of many factors. Officials are used to claim that the reasons why this price is on such high level are war in Iraq, convulsions and other political pressure in Closer and Middle East and Nigeria, growing consumption in Asian countries as China and India and falling value of US dollar as well. But these are not only reasons why oil and gasoline are so expensive. Also claim that the oil-mining is on its top and there is going to be absence of this raw is very often explanation of this situation. Other possible (or maybe more sure) factors are speculations on hedge and similar commodity markets, where banks and other corporations accommodate their abundance instead of investing them on casual stock markets. Very important indicator in this direction is decreasing tend of dollar. This is also thanks to the mortgage crisis which the US are facing now. Banks there have made a mistake, which led to this situation. Thanks the monetary policy of the States, the price of oil has rose more than quadruple during last 7 years, from $30 in 2001 to almost $140 a barrel nowadays. So there is no exact reason why price is so high and on its way of another increase, but it is probably not as important as the future progress of it. Because when trend is continuing, in short-therm it could cause a kind of catastrophe for carriers, as well as for ordinary people and also maybe for treasuries of all countries. Because some countries afford the subsidy, or diminish oil taxes in order to make gasoline accessible for people. And when going on this subsidy and oil price is rising, money in the country budget and treasury starts missing. But on the other hand, when stopping this, the demand for gasoline starts to fall because people won't be able to purchase it. But, consequently, in the long-term it should lead to a boom in new technologies and also to rise the care about the environment, while there will be probably less exhaust gases. Anyway, gasoline prices should reach their peak this summer and this peak should be $4.15 a gallon, what is quite high price. But experts predict this price shouldn't be overcome in the close future. But it is still vague, because it really depends on various factors. For example, of fear on drop in world oil inventories, concerns about hurricanes or other causes that could disrupt the Gulf Mexico supplies. This is also mean of policy and presidential election campaign and potential presidents of the US are trying to assure people and offer their programs which promise lower prices. Of course every from both candidates has got his own tactics to get people to his side. As I have already mentioned, this problem hit the whole world, not only United States. So this means that also Asia and Europe suffer from such high prices. Of course the price depends also on the region where buying and how they fluctuate, but the average value is given. So carriers in some European countries have started to strike and they blockage ways and highways in Spain, Portugal and France to reach drop of prices. And because they are mostly lorry drivers, also delivering of some products as food and other is bounded or stopped. So that could mean an absence of some important goods, especially those from abroad, and lead to another financial losses and more expensive products, because demand would be higher than supply. By the way, I think the oil and gasoline price shouldn't be at such high level, because it is of no need but it is much more about the business. But on the other hand, we shouldn't be as much depend on this raw and try to develop new technologies which will be more efficient and friendly to the environment and using them will be without any significant restrictions. In my opinion these technologies could be already developed, but the companies mining oil are against such solution, because then they would lost their profits, even they have enough I think...

related story: http://news.yahoo.com/s/ap/20080611/ap_on_go_co/gasoline_oil_prices;_ylt=AvIcD07hyvPGwfNl67z7Amys0NUE

by Radka Konkolova for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.<br><br><font size=2>These news are original content from young talents around the world and are selected for you by Chris Cantell.</font><br>


edited by Katarina Gaskova

Labels: Business, CantellTV, Chris Cantell, Christopher Cantell, digital broadcasting, SigEx Foundry, SigEx Telecom

posted by Blog TechSource @ 2:18 AM