Oil Price Graph: An Informational Tool

Oil Price Graph: An Informational Tool

In the past if an oil price graph was posted in a public forum most people would have breezed right past it. Today, if the average consumer sees an oil price graph they will probably stop and take note. This is because over the last five years oil prices have been affecting the average consumer through fuel costs. Because of this, there are more people than ever before concerned about the changes in oil prices. An oil price graph can really lead the average person to pause for thought about what exactly affects the price of fuel.

Many people assume that because oil is a natural resource that the price of oil today shouldn’t be any different than it was a year or five years ago, but an oil price graph will show that this is not the case at all. In fact, an oil price graph can really provide a historic detailing of the change of oil pricing over time.

Wondering what causes the changes on the oil price graph? It’s all about getting the oil and fulfilling supply and demand. This all starts with a production company that has to extract the oil from the ground. This costs money but this is not where the cost of oil stops. Once the oil is extracted from the earth it has to be delivered to a major shipping location which also costs money. From here, the oil is shipped to a refinery, which again, costs money. Lastly, it is turned into different types of fuel such as gasoline, heating oil, jet fuel, and more.

But it doesn’t stop here; instead the refiner ships the products to the wholesales suppliers who then spend more money shipping the oil that has been turned into gasoline to retailers such as gas stations. Every one of these locations and practices is a business and everyone wants and needs to make money. So, at this point it’s just not the price of oil but the price of doing business in the oil business.

An oil price graph makes it clear that the price of oil today is more involved than the average consumer would have ever known in the past. The price of oil changes each day based on investments, drilling, weather conditions, supplies, and more. The increase in price is what has caused an increase in gasoline prices that have had many consumers up in arms about the cost of filling their gas tank. Taking a look at an oil price graph is an educational, informational experience that most people will enjoy.