Why do gas prices fluctuate so much when most other things remain relatively stable?

The competition between US companies and the OPEC for the sale of oil results in both prices being roughly the same, even when the production costs are less variable.

When the OPEC finds its income dropping due to lower demand, it lowers the price and sells more oil, and the opposite is also true. In addition oil prices depend on the amount that can be supplied and in times of war when some of the OPEC countries are not producing then prices will rise so that supply and demand match.

I now that is an previous placed up, yet i could no longer help myself. grant and insist? Now that is humorous. whilst OPEC controls supplies it manipulates the marketplace. enable's say the call for is a hundred barrels, yet opec in simple terms releases 50. Is that grant and insist? that is marketplace manipulation forcing up costs by using fact they do no longer meet the call for on objective. grant and insist could be like me having an orange tree with 200 oranges and that i've got 250 purchasers. OPECs way is in simple terms saying they have a hundred twenty five oranges, even however they have 200, accordingly forcing fees even larger. that is why they use to have controlled costs earlier 2005. They capped the barrel at around $25-$29. What exceeded off whilst they lifted the cap? $one hundred forty four a barrel, accordingly $4 a gallon gas.

oil is a futures traded commodity. the potential demand is driving the price changes.

Billions if not trillions of dollars riding on the table by speculators.