Supply And Demand In The Gasoline Market

Term Paper Title	Supply And Demand In The Gasoline Market
# of Words	687
# of Pages (250 words per page double spaced)	2.75

Supply and Demand in the Gasoline Market

Supply and Demand in the Gasoline Market

The substance known, as gasoline is a mixture of lighter liquid hydrocarbons
used chiefly as a fuel for internal-combustion engines. It is produced by the
fractional distillation of petroleum; by condensation or adsorption from natural
gas; by thermal or catalytic decomposition of petroleum or its fractions; by the
hydrogenation of producer gas or coal; or by the polymerization of hydrocarbons
of lower molecular weight. Gasoline produced by the direct distillation of crude
petroleum is known as straight-run gasoline. This is the type of gasoline, which
we use in our automobiles. It is this which makes gasoline a product that is
indispensable and also makes it highly demandable from the driving public. Thus
the price of gasoline can also have a direct affect on what types of cars people
will buy.

One of the problems with gasoline is that it is, for now, the main fuel for
automobiles and because of that it has become a necessity for most of the many
Americans who own cars and have no choice but to drive to get to work, as well
as in many other parts of the world. It is this constant need for gasoline to
get us around which makes the demand part of it very high. On the supply side is
where OPEC comes in, because they are the main suppliers for the gasoline for
the world at large. The Organization of Petroleum Producing Countries (OPEC) is
a permanent, intergovernmental organization, created at the Baghdad Conference
of September 10-14, 1960, by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. The
five Founding Members were later joined by eight other Members: Qatar (1961);
Indonesia (1962); Socialist Peoples Libyan Arab Jamahiriya (1962); United Arab
Emirates (1967); Algeria (1969); Nigeria (1971); Ecuador (1973-1992) and Gabon
(1975-1994). OPEC's objective is to co-ordinate and unify petroleum policies
among it�s Member Countries, in order to secure fair and stable prices for the
petroleum producers; an efficient, economic and regular supply of petroleum to
consuming nations; and a fair return on capital to those investing in the
industry (OPEC Web...

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