Explain what you believe to be the 3 biggesrt reasons why the price of Essay

Explain what you believe to be the 3 biggesrt reasons why the price of a gallon of gasoline has fallen so much in the last few momths - Essay Example or the decreased price is the decreasing oil demand based on that numerous countries have been developing oil reservoirs that can sustain their internal industry. In the United States, the production of oil has increased significantly since 2008. The increase has been influenced by the more advanced drilling in the Gulf of Mexico. Oil production from the United States has increased the supply to the international market. In addition, different from oil from the Middle East, the price for American Oil is relatively cheaper (Plumer 1). This is based on that the United States has decreased its purchase level of expensive international oil. The impact of the strategy has been consumer friendly. In the global market, more oil from the United States and other suppliers the supply is relatively high. This decreases the monopoly of production from the Middle East (Plumer 1). Moreover, with high supply the demand in in major oil producers decreases. To sustain their production, oil producers decrease the oil prices with the objective to retain relevance in the global market. This changes has significantly influenced the decreasing gasoline prices. The consumer ability to purchase cheap oil is directly influenced by the general drop in the price of crude oil. The fall being attributed to high supply and low demand of the product. On a daily basis, the United States millions of barrels of oil to supply to the large global oil economy. The slightest decrease on the price of crude oil has a significant effect on the retail price quoted for the gas. From 2013, the price of crude oil has decreased significantly. The projection of the decrease depict even more relatively low prices by the end of 2015. The fall of global prices was also influenced by the decision by OPEC not to manipulate oil prices and oil production (Plumer 1). Previously, the oil body would determine the prices of oil from its producers. The body has in its control the largest producers of global oil. With