Monday, August 23, 2010

How does the amount of oil the United States imports from other countries change the price of oil????

It's all a matter of supply and demand. If the USA wants more of the limited supply of oil, it means other countries will not be able to buy the amount they want. So the other countries say ';Hey I will pay you an extra ten cents a gallon if you will sell it to me instead of the US'; So the suppliers tell the US if you want that much oil you got to meet the price the others are willing to pay for it. And so it goes.How does the amount of oil the United States imports from other countries change the price of oil????
USA and China are the major buyer of oil. Oil price has increased due to the combined demand of both countries. You can add as well that every country's oil requirement increases due to development, increasing population, etc.





Like what the previous answerer said, it's more of a demand pull. (supply and demand)

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