Why does oul and gas have such big price swings?

Back in the 60s and 70s it would go up a penny or 2 here and there now it goes up a dollar at once ridiculous

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  • Scott
    Lv 7
    11 months ago

    Oil is bought and sold as a commodity, not as manufactured goods. There is not an unlimited supply at any given time. This makes it susceptible to price swings.

  • JetDoc
    Lv 7
    11 months ago

    Crude oil and gasoline are sold and traded internationally as a commodity, just like corn or wheat. When supply goes down or demand goes up, prices change. Most recently, the drone attacks on the oil fields in Saudi Arabia caused a fluctuation in the world supply and prices went up to compensate.

  • Zany
    Lv 4
    11 months ago

    There is not enough gas tax difference between Oregon and Washington state to pay for 3 attendants to pump gas all day with wages, benefits, etc. at an Oregon station. Yet the difference in gas price is often nil between the two states with stations five miles apart. It has nothing to do with supply and demand, never has, never, will, it's cost tolerance and collusion.

  • 11 months ago

    We're not living in the 60's any more. No more 25 cents a gallon gas or 49 cent cans of oil..

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  • 11 months ago

    Inflation is a major false driver on what consumers see as prices; the penny or two back in the 60s and 70s are quarters to dollars now. OPEC is a strong driving force on keeping prices artificially higher by regulating flow; 2nd aspect of that is as the world utilizes more total energy the demand of a limited commodity increases and the price follows---basic Econ 101. The recent Saudi production losses and other tensions raise a risk quotient for insurance and actual delivery of oil from some areas (Straight of Hormuz). Also, consumers pay for the refineries and delivery system down to the guy at the pump with taxes and you don't pay what you pay TODAY for Today's gas/oil but the price for REPLACING today's gas/oil at the higher driven cost.

    That is on top of about 1/3 of oil cost is purely speculations in the markets; if event A happens it might effect delivery in Chile, but have zero effect in Vermont except the butterfly effects you could think up. If Country 4 acts aggressively towards Countries 9 and 22 then that can have more ripple effects on the market, and it turns into something of a betting frenzy on who can bid up or down a certain amount of tonnage depending on trends.

    It isn't a simple answer, and this is tip of the iceberg info that others dig deep into. Also, what you experience is localized and you might have knowledge of the national tends, but maybe not the price of gas in Canada, France or the UAE. And yeah, I miss cheap gas and 68 Mopars with 440s but that's our luck ..but at least we got to experience it.

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