http://www.canada.com/business/fp/prices+rise+seven+week+high+above/2096046/story.html
Summary:
Oil prices are being constantly changed throughout the year. It has been raised to US$74 a barrel. Demands for oil have also been increasing dramatically. During the year, oil prices have risen 65% but still haven’t broken a 2009 high of US$75 a barrel. Cold weather in the States has also helped boost oil prices. Another thing that affects oil prices is when the U.S. dollar lowers and becomes closer to the other currencies.
Connection:
Oil pricing is a major concern to not just consumers, but also to businesses. There are a lot of businesses that require automobiles. These automobiles require oil to operate and therefore concern the business. Oil is considered as an expense to a company. If the oil prices increase, it would cause the company to pay a lot more. On the other hand, if they have to pay more, they can claim more tax in return. The increase in oil prices may also affect the net profit of a company. It may lower the company’s profit if the increase in oil prices is outrages. Due to the increase in oil prices, many companies have decreased their numbers of automobiles. By selling off automobiles (asset), it allows companies to gain cash (asset) to pay off the increase in oil prices.
Reflection:
I think that the rise in oil pricing has been very overwhelming for the past year. I would say it can and will rise even higher if we don't hold on to our natural resources. Today, a lot of people still haven't realized how important our natural resources are and how important it is to preserve them. How many people are demanding for oil? Well ask yourself, how many people have a car at home? Majority of the people you think about will have a car or two. Are they really necessary? Say if you were at home and wanted to grab something to eat two blocks, would you walk there or drive there? A lot of people would probably say that they would walk, but in reality they would just end up driving. I think that we, as humans, are depending on technology too much. We are getting too lazy! The main reason for the rise in the oil prices are nothing else but ourselves.
