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In 1970 the official price of crude oil colour color was rigid at $1.80 per barrel. Since then the price of oil has been going up and down all over the years. Its been effected by numerous things including war, hurricanes, politics, and the economy. On June 16, 2008 oil hit a record of $139.89, threatening to breach the $140 level (business.inquirer.net). Oil has always been something that commonwealth worry about. How long will the oil last? How big-ticket(prenominal) is oil going to get? There ar completely sorts of questions involving oil. One big question is, how is oil affecting gondola companies? The rise in the oil prices plays a major mathematical function in the automotive industry. The world consumes over 82 one million million million barrels of oil per day (BPD), with the united states taking close to 20 million BPD (McFarlane). Oil provides 97 percent of the merchant vessels sacks that helps to run the cars, trucks and other vehicles in the nations roadway (Heinberg). Thus, when the price of the oil rises, it clearly concerns the auto industry because the companies are competing with each other to meet the new demands for more fuel efficient consumer conscious at reduced price. There is no doubt that it is affecting the profit margin of the company.

Moreover, cast up oil price is also affecting the type of vehicles demanded by the guest and the way those vehicles are designed. The demand of oil and the difficulties in oil refineries is the major cause for the increase oil price. Oil is utilise mainly for two purposes: Firstly, to make the gasoline and secondly in skim production. The gasoline prices in the US have increased dramatically during the last few years reaching averages over $ 3.00 per gallon (EIA-Energy Information Administration). Oil is the major ingredient in the production of tires. Increased in oil prices means increase in the address to make the tires, increase in the cost to heat or cool the plant where tires are make and lastly increase in the cost to ship the tires. The tire makers are... If you want to get a full essay, order it on our website: Orderessay

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