What causes changes in oil prices in Connecticut?


Quick Answer

Fluctuations in oil prices in Connecticut occur due to the usual forces of demand and supply, among other economic factors that affect the prices of commodities. The prices are also affected by seasons. During winter, the prices hike up and they reduce in summer because of changes in home heating demands.

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Full Answer

Oil prices in all regions across the world are prone to frequent changes due to certain economic, social and political factors that most people do not have control over. In Connecticut, oil prices have risen due to an increase in international demand, especially from the middle-class consumers in China and India. As the economies of these two countries continue to grow significantly, the demand for oil import increased in similar proportions resulting in a shortage of supply.

The weak dollar has also contributed to the increase in oil prices as its purchasing power has gone down. The power of the dollar has been affected by the weak economy, increase in the U.S. international debt and increased expenditure by the federal government. As the purchasing power of the dollar drops, the oil becomes more expensive in the U.S.

Political unrest and international events in oil-rich countries have brought uncertainty to the oil market. Countries like Syria, Nigeria, Yemen and Israel have been in dispute over control of oil deposits, thus resulting in disruptions in the supply chain, consequently causing prices to rise.

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