Food banks, who choose bare and many lower-income families between consumer goods and gases, are all wondering if gas prices will ever fall? With emerging economies such as China, which is burdened with oil supplies, it seems unlikely that gas prices will be as low as they once did. China's unprecedented growth accelerated the country before industrialization. As old Beijing was hurt to create a new, modern city, the country's demand for global oil supply is growing. China's oil needs will only grow in the coming years, and as this demand will increase, gas prices will continue to rise.
There are also manufacturing costs. Oil extraction from the Gulf of Mexico is no small task. Companies have to pay for workers to use oil drilling equipment, usually in two-week shifts. The work itself requires technical expertise, which requires higher pay. The cost of production is high, oil prices can only fall, they spend too much to open the oil coils and stop them. When defrosting the oil drill, it reduces the amount of supply and immediately increases the oil price. There are also some who do not think that oil operations will stop, just because the hire of standby equipment would be too much. It makes bigger sense to make money, even if they do not cover production costs as they pay nothing and do not pay for standby equipment. Whether it is true or not, it does not seem likely that the cost of producing oil will slid; so the price of gas will not drop.
Steel prices also play a role in oil costs, and rising steel prices due to a sudden increase in developing countries cost the cost of a barrel of oil rising. Hence, rising steel prices, rising production costs and emerging countries require more oil than ever before, it does not seem as if gas prices would ever run out
Source by sbobet