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Abc Corporation Of India

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Issue:

Business

 

Written by:

Harriet K

 

Date added:

July 24, 2014

 

Level:

University

 

Grade:

A

 

No of pages / words:

2 / 554

 

Was viewed:

6523 times

 

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Essay content:

Higher crude oil prices directly affect the cost of gasoline, home heating oil, manufacturing and electric power generation. How much? According to the EIA, 96% of transportation relies on oil, 43% of industrial product, 21% of residential and commercial, and (only) 3% of electric power. However, if oil prices rise, then so does the price of natural gas, which is used to fuel 14% of electric power generation, 73% of residential and commercial, and 39% of industrial production...
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For this reason, higher oil prices increase inflation, thereby increasing the cost of everything you buy. Concerns about inflation will depress the stock market, as happened in the summer of 2006. Crude oil prices most directly affect you in higher gasoline prices and higher home heating oil prices. Crude oil accounts for 55% of the price of gasoline, while distribution and taxes influence the remaining 45%...
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