Market Data Analysis Report on Gasoline



Market Data Analysis Report on Gasoline

Section 1 (Gasoline price and consumption)

Analysis of Graphs

The analysis contains retail prices and consumption of Motors in US since 2000. The prices taken in graphs are monthly prices. It has been observed that the prices were slightly stable since 2000 which were fluctuating around $1.5 but after 2004, a significant increase was observed in the oil prices reaching its all time high in 2008 i.e. $4 per gallon including taxes. Thus, after 2008, significant measures were taken in order to decrease the prices of gasoline which was successful and reduced down to almost $1.7 per gallon. However, the measures were not very successful and that was a short term decline. In the late 2009, the prices again started to increase with a high velocity and reached $4 again in late 2011. Since then, prices are fluctuating around $3 to $4.

Consumption and demand of gasoline on the other hand is complementing the law of demand, i.e. the consumption was certainly at higher levels till 2003 when the prices were stable around $1.5 per gallon. However, the consumption started to decline with the continuous increase in prices and higher volatility in prices though they remain at lower ends in for some time. The overall consumption of motor gasoline was 80000 (000's) gallons per month in 2000 which has been reduced to around 23000 (000's) gallons which is almost a 72% decline in the consumption of gasoline.

Section 2 (Determinants of gasoline price)

Following are factors that affect the prices of gasoline in US:

The cost of crude oil

The expense of crude oil as an allotment of the retail gasoline cost shifts over the long run and around locales of the nation. Crude oil prices are dead set by both supply and demand elements. On the demand side of the comparison, planet budgetary development is the grandest component.

Refining costs and profits

Refining costs and profits shift from area to locale of the United States, mostly because of the distinctive gasoline details needed in diverse parts of the nation. The qualities of the gasoline prepared hinge on upon the sort of crude oil that is utilized and the sort of preparing innovation accessible at the refinery where it is processed. Gasoline costs are likewise influenced by the expense of different parts that may be mixed into it, for example ethanol.

Dispersion and retail costs and profits make ...