Tuesday, December 22, 2009

Why changes occurred in supply, demand, and price in regards to residential heating oil in the United States?

Heating oil comes from petroleum, so crude oil prices affect HO prices. Also, unusually cold weather cause increased demand, increasing prices, and vice versa.





HO can be cracked to gasoline, so gasoline demand affects price of HO, since increased demand for gasoline prompts more cracking making more demand on HO supply.





Demands are also affected by these same factors occuring in foreign countries, like China.

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