Oil prices are anything but constant, that’s a fact, but where are they headed and why?
UP, down, UP, down, WAY UP, UP, UP, UP, way down. The fuel price rollercoaster has produced a lot of up and downs throughout history and lately it has produced some of highest prices and more recently some of the lowest oil prices. So what does the future hold?
So, it looks like the rollercoaster ride is going to continue as analysts predict a recovery in oil prices by 2017, but are the ups and down really necessary?
On the surface oil prices may look like a game of greed played by big oil companies, and to an extend they might be, but oil prices are also tied to politics, war, and economies. Take the war against ISIS for example. As mentioned in the Wall Street Journal article, many countries in the Middle East are fighting a war and the war is expensive, so they need their economy to grow and provide the funding for their militaries. However, many of these countries’ economies rely heavily on fossil fuels so the immediate solution for increased capitol is to increase oil and gas production. However, as they increase product they over supply the market and the price drops and as the price lowers they have to produce more and more oil to get the funding required for their war against ISIS which further lowers the prices and then the cycle starts over again.
We are not saying this is the only reason or the main reason for the oil market’s fluctuations, it is simply an example of how the world’s politics, countries, and economies affect our fuel prices at home. At AET we realize many businesses may not have time to follow the oil market, especially smaller businesses who have to focus on their own growth before they can analyze all the markets that will affect them. Now, at AET we track the oil markets very closely because they literally are our business, so we have decided to blog about upcoming fuel trends once a week and help keep you informed. No charge, just free information and maybe a little advice. Who knows maybe it will help you contract a good fuel price for next year or help you prepare for changing oil prices 🙂
Thanks for stopping by and we hope you will be stopping back !
Questions ? Give us a call 715-571-1914 or email Wes at wes@advancedenginetech.com
