The research to find out about the subject. Why is oil so expensive The results are as follows:
1. The causes of high oil prices. Oil is a natural resource that I used to be. And is likely to run out now, on the contrary. Oil is a major factor in developing countries within the framework of capitalism, but stressed that industry. Without attention to natural capital The trend for oil continues to rise, the demand for oil has increased. But oil is finite Oil prices rose steadily. Without the tendency to decrease
the factors that influence the cost of crude oil and refined products
, crude oil and petroleum products are traded on the free market. This section provides an explanation of the factors that result in changes in demand for crude oil and refined products, crude oil and refined products increased demand for crude oil and refined products is increasing both domestic and levels. Earth Especially in China India and
the limitation of refining capacity in the world market
for oil demand, the increase in current. Global refinery crude run right now. Close to full capacity and refining capacity. So the future is likely to require the creation of a new refinery to accommodate increased demand for oil increases. However, a key factor in building new refineries is the significant investment necessary for the construction and operation of the refinery increased. In order to meet more stringent environmental standards worldwide. Both in terms of environmental performance, maintenance of the refining process. And to obtain fuel, clean-up and waste with minimal environmental
stability in the supply of crude oil
insecurity and political instability in the Middle East is also a source of instability in crude oil production. And at the same time as the cause of the volatility of crude oil prices, with
extreme weather conditions and difficult to forecast or predict
severe weather effects such as storms, hurricanes in the United States. Thus refining capacity worldwide fell intermittently. Oil refining capacity at lower volumes coupled with speculation of refined petroleum products in the market. The price of oil has fluctuated greatly throughout the world.
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