Fluctuations in oil prices are driven by events that disrupt supply and distribution, including geopolitical conflict and weather-related catastrophes, states the U.S. Energy Information Administration. Forecasting oil prices must attempt to account for these factors.
Oil and gas prices, when comparing average annual prices adjusted for inflation, have a close relationship, as reported by InflationData.com. One may move up or down faster than the other during a short period of time, but they tend to move in tandem over the long run, as of 2015.
Gas prices are predicted in advance, like many other goods on the market, by looking at past price history, available supply and demand and fees or interest rates, according to Zacks.com. In the case of gasoline prices, the commodity price of crude oil effects gas in the long-term since gasoline is
Gas prices increase as the price of crude oil, needed to produce petroleum, increases. Crude oil prices are affected by supply relative to both the actual and expected demand for petroleum products.
Factors that cause gas prices to rise include rising oil costs, the demand increasing and the supply decreasing due to declines in production. Gas prices also rise during the summer season, as gas stations sell summer blend gas, which is a more expensive type of gas.
The United States Energy Information Administration shows that the price of gas is determined by the price of oil and its associated global supply and demand. Taxes, refinery costs and exchange rates also have effects, notes Investopedia.
Gasoline retailers set the gas price at the pump; however, many of the factors are beyond their control, such as the market price of crude oil, distribution interruptions, the work of speculators, the value of the dollar and taxes. Refining and composition requirements also contribute.
There are several websites that allow users to look up prices at nearby gas stations, including GasBuddy.com, Automotive.com, GasPriceWatch.com and AutoBlog.com. GasBuddy.com has a convenient app for use on mobile devices. Most of these sites rely on members to update the information, so users shoul
While most of the price fluctuations at the gas pump are tied to the price of crude oil, other factors, including supply and demand changes, commodity speculation, regulatory changes and weather, also play a role. However, these effects are not always immediate, and may take months to affect gas pri
The primary driver of natural gas prices is a spike in demand when available supplies are low. For instance, natural gas use peaks over the winter due to its use as a heating fuel. Weather and refining capacity problems can also lead to short-term increases in natural gas prices.