US financial/economic problems?

  • Thread starter Thread starter tu3moon
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tu3moon

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Hi, i'm trying to learn english, (English is my second language), and I'm trying to get a hold of current Economic and any other big issues (problem) including why gas price is going up and down??

Please if you can kindly explain to me in an easier term, I'd appreciate that and would be of much help.
 
Gas and oil prices go up and down for several reasons. Supply and demand. When the world economy is going well and we are using lots of oil for factories supply is high so the price goes up. When the world economy drops we do not need as much oil so there is to much of it which causes the price to drop. Now if there is fighting in the Middle East then we think the oil supply is going to stop or be threatened then the price goes up. Lot's of times price of oil is set by "speculators" they buy and sell oil shares/stock and they guess if it is going up or down which then drives the price in the direction they are guessing. I hope this helps
 
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