MENTORS
  • News
  • Business
  • Self Growth
  • Mentors Collective Podcast
    • Apply As Guest
    • Listen on Spotify
    • Listen on Apple
No Result
View All Result
  • Login
MENTORS
  • News
  • Business
  • Self Growth
  • Mentors Collective Podcast
    • Apply As Guest
    • Listen on Spotify
    • Listen on Apple
No Result
View All Result
MENTORS
No Result
View All Result

Gas Prices: How Did We Get Here?

Mentors Collective Staff by Mentors Collective Staff
July 6, 2022
in Economy
Lack of money for gasoline and fuel. Expensive gasoline. Driver man holds one dollar end empty wallet against the background of a fuel nozzle in the gas tank. increase in gasoline prices concept.
Share on FacebookShare on TwitterShare on LinkedIn

Even before the situation in Ukraine, we saw trends in rising energy prices and inflation. When the invasion became a reality, it increased the pressure on the global market even more. The regional destabilization created volatility in the global fuel prices, even though worldwide oil production increased during this time. Gas

The high demand has remained consistent over the past months while the availability for certain regions, particularly in Europe, has declined following European and U.S. sanctions on Russia. This has, in part, led to a worldwide increase in gasoline prices despite the global supply only increasing slightly.

The sanctions and the uncertainty following the EU’s ban on oil imports from Russia have scared the global market and pushed prices upward. Crude oil prices have increased to an unprecedented level, which directly affects the fuel prices at the gas station. 

In general, gas prices follow the curve of demand/supply, but the strong position of The Organization of the Petroleum Exporting Countries (OPEC) means demand and supply do not entirely dictate the cost at any given time. OPEC can decide on a price and supply internally to keep gas prices stable, such as they did in November 2016 when they cut production to increase the price. In 2020 when governments began shutting down due to COVID-19 and the oil prices fell heavily because of the drop in demand, OPEC also agreed to lower output to support stable prices. 

Furthermore, commodities traders trading in oil futures (and other trading activity) can hugely affect the gas prices around the world despite no oil actually changing hands. The problems we are seeing today are partly due to massive volatility when it comes to oil trading, trading volatility that does not reflect the demand and supply around the world.

In recent years, oil prices have fluctuated heavily and it’s in those uncertain markets that commodities traders can affect the oil prices the most, given the unstable market. 

See below for states with the most expensive gas right now. 

A picture containing graphical user interface

Description automatically generated

The overall rising costs for fuel, food, and energy have already led to higher prices for both businesses and consumers. Following a higher cost structure for essential supplies, we will continue to see rising prices for almost all goods and services going forward. I believe the prices may take a long time to stabilize and are likely to continue to increase well into 2023. The Federal Reserve has raised the interest rate, and future hikes are expected this year. This will lead to less demand for both companies and consumers.

Author:

Lucas Waldenback, CFO at Zutobi.com with a Master’s Degree in Business Administration, worked within the automotive industry for the past 5 years.

Tags: energygasglobalinflationpricerise
Mentors Collective Staff

Mentors Collective Staff

Engineer and active journalist with a huge passion for innovation, social media, health, and business. People inspire me, creativity drives me.

Related Posts

Distribution Industry Condemns Tax Increase on American Families and Businesses
Economy

Distribution Industry Condemns Tax Increase on American Families and Businesses

All members of the U.S. Senate opposing H.R. 5376, The Inflation Reduction Act, and urging legislators to vote against the...

by Mentors Collective Staff
August 6, 2022
251
What A Circular Economy Isand How It Works
Economy

What A Circular Economy Isand How It Works

‘Circular economy’refers to a system-focused economy that includes industrial processes and economic activities that are restorative or regenerative, allowing...

by Dawn Wells
July 29, 2022
259
Canadian Asset Management Firm: Energy Spas released their insight on the current global economy for the Q1 of 2022
Economy

Canadian Asset Management Firm: Energy Spas released their insight on the current global economy for the Q1 of 2022

The first quarter of 2022 has been a challenging time for financial markets and global economy. Inflationary forces continued...

by Dawn Wells
July 23, 2022
254
Inflation Woes? Create a Budget in These Five Simple Steps
Economy

Inflation Woes? Create a Budget in These Five Simple Steps

'The team at Finch'. Finch is a financial wellness company that empowers customers to make the most out of...

by Mentors Collective Staff
July 20, 2022
253
Next Post
Health Tech 50: Annual List of Top Venture Capitalists to Put on Your Radar

Health Tech 50: Annual List of Top Venture Capitalists to Put on Your Radar

Popular posts

  • Mobile Pixels Inc. Launches Geminos, a Stacked Dual-Screen Desktop Monitor to Enhance Any Workstation
  • Distribution Industry Condemns Tax Increase on American Families and Businesses
  • How This Philanthropist Is Making a Positive Impact
  • From Invisible Scars to Visible Healing
  • Food is the Solution: Dr. Elizabeth Klodas and Step One Foods

Popular Tags

American Benefits Business business tips career coach covid-19 digital marketing economy employee Entrepreneur entrepreneurship featured finance gas Health inflation influencer investment Investor job leadership marketing Medical School mentor mentorship money News pandemic personal development Plastic Surgery recession Residency retirement small business social media sponsored startup strategy success tax technology tiktok tips workplace
ADVERTISEMENT
  • About
  • Free Mentorship
  • Show Your Support
  • Become a Contributor
  • Apply As Guest
  • Listen on Apple
  • Listen on Spotify
Mentors Collective Success Magazine

Owned by Otter Love LLC

No Result
View All Result
  • News
  • Business
  • Self Growth
  • Mentors Collective Podcast
    • Apply As Guest
    • Listen on Spotify
    • Listen on Apple

Owned by Otter Love LLC

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Go to mobile version