What determines gas prices?

Question

Who or what determines gas prices? Why do they fluctuate so quickly?

Answer 1

idk but i have a tahoe and it cost me 80 bucks to fill up now its ridciulous

Answer 2

first of all, te world is running out of gas, so they need to move the prices up so it's consumed so much, when a certain complany isn't selling good, then they lower the prices

Answer 3

OPEC=Arabs

Answer 4

greedy oil owners!

Answer 5

the market

Answer 6

These Days...-just about EVERYTHING. World Demand. Availability. Commodity Speculators. Weather Considerations... Political Influences... and virtually EVERY Rumor- that happens to be BAD...  :(

Answer 7

weak US dollar,reduce gas production,wars,etc.all these can influence n determine gas price.

Answer 8

Gas prices are determine mainly by supply and demand in the market. When the demand is high and the supply is low the prices are high. When the supply is high and the demand is low the prices are low. THE prices are determined by the world market where the broker and supplyer trade.

Answer 9

The price of a barrel of crude oil.

Answer 10

The price of oil is set in the global marketplace. Oil is traded widely all around the world and can move from one market to another easily by ship, pipeline or barge. Therefore, the market is worldwide and the supply/demand balance determines the price for crude oil all around the world. If there is a shortage of oil in one part of the world, prices will rise in that market to attract supplies from other markets until supply and demand are in balance. If there is a surplus in a region and the price drops, buyers will soon be drawn to that market. This explains why crude oil prices are similar all around the world. Prices vary only to reflect the cost of transporting crude oil to that market and the quality differences between the various types of oil. The global nature of the market also explains why events anywhere in the world will affect oil prices in every market.

In addition to all of the actual barrels of oil that are traded, there is a second market that trades in "paper" barrels. This simply indicates that oil is traded on "paper" based on a perceived monetary value of oil and there is not usually a physical exchange of the product. The two key markets where paper barrels of oil are bought and sold are in New York, on the NYMEX (New York Mercantile Exchange), and in London on the IPE (International Petroleum Exchange). In these futures markets, paper contracts for oil are bought and sold based on the expected market conditions in the coming months, or even years.

There are two types of buyers and sellers in the futures market: those that are actual producers or users of crude oil and those who buy futures contracts as an investment, without any intention of ever taking possession of the actual crude oil. The first group use the futures market to protect themselves from price volatility by locking in either their costs or their revenue. The second group are investors who can make money by correctly guessing whether prices will increase or decrease in the future.

In the spot market, oil is bought and sold for cash

In short the fluctuations in the market price are determined by the supply –demand equation. This determinants of this equation normally have already occurred a few days  to a week before the actual crude oil prices changes.

Answer 11

I'm guessing you mean petrol? (u guys call it gas in the US right?)

anyway, its influenced by two main factors, the price per barrel of crude oil (you can find this at http://www.oil-price.net/), and the exchange rate of whatever currency your country uses.(i.e. how strong your dollar is).

it fluctuates with exchange rates, as well as changes in the price per barrel of crude oil. since exchange rates are constantly changing, petrol ('gas') prices are also changing accordingly.

other factors which may affect prices are local or national taxes on the petrol as well as local influences such as cost of delivery (e.g. u may find that prices on an isolated rural area or island are double that of in a big city)