Recession too has
a similar effect. Consumers become mindful of the need to make
savings and one of the ways in which they might do this is to
reduce car usage or even cut down on their heating bills. Companies
looking to reduce their outgoings may ask employees to work
from home, reducing their fuel consumption thereby driving down
the demand for, and thus the cost of, fuel.
Speculation and oil
Other factors that
might bring about price reductions or increases include movements
in refining costs, the cost of distribution and marketing, or
a change in the level of taxation applied to the product.
regard oil as a major commodity that may be bought and sold
at strategic times in order to generate a profit. Although purchasing
barrels of oil, they in fact buy paper contracts that represent
physical stocks when prices are low, and use their knowledge
and skills to try to make oil price predictions in order that
they might sell at a time when prices are at their highest so
as to maximise their profits. When speculators invest large
amounts of money into the futures market this can have the effect
of driving up the price of oil whatever the other factors affecting
supply and demand happen to be at that moment in time.
If you have
ever considered trading on oil prices then the above websites
may be of interest you to. Sites like these allow you to bet
on the direction of oil prices, so you can profit (or lose)
on both directions of the oil price. Spread betting in general
is a very risky form of betting and one should only bet money
they can afford to lose. Independent financial advice should
also be taken prior to trading or betting using oil prices,
as they can move quickly in either direction meaning you can
gain or lose a lot of money in a very short space of time.