Oil Prices

As oil supplies become increasingly scarce anddriven per vehicle in a given year, has also increased
demand rises, oil prices are steadily increasing.steadily over the last decade. While industries in the US
Disruptions in the supply chain may occur at oil wells,are becoming less reliant on oil and more
during transportation from wells to refineries, atenergy-efficient, increased consumer use of oil offsets
refineries, or along the pipelines that transport oil tothese advances.Historically, oil prices were affected
different parts of the country. In 2005, some of thelargely by major political events and wars. Since 1983,
most powerful hurricanes in recent history passedcrude oil has been traded as a commodity on the floor
through the Gulf of Mexico and hit the major oil refiningof the New York Mercantile Exchange (NYMEX).
regions of the Gulf coast. These events had aOften volatile market forces are increasingly driving oil
profound impact on oil prices across the United Statesprices, and the earlier checks that could be instituted
that will be felt for some time to come.Alongsidethrough governmental price controls or production and
supply issues, increased demand also plays a role inrefining quantity caps are less powerful. The stabilizing
driving up oil prices. Demand for oil varies, just likeforces of controlled production and supply no longer
demand for any other commodity. Seasonal increasescounter the sudden swings in crude oil futures that
in oil consumption occur each winter. While recent dataviolence in Nigeria, or war in Iraq, may induce. As oil
suggests that consumers are buying fewer sport utilitysupplies continue to dwindle, alternative fuels such as
vehicles and trucks that consume large amounts ofcompressed natural gas may help make up some of
gas, these vehicles are still extremely popular. Thethe shortfall in energy needs.
number of vehicles per family, and average distances