Long Term Theories and Short Term Factors
From Dickinson College Wiki
Long Term
Short Term
Throughout the history of America's oil consumption there have been many events that have affected the price of oil. These events usually have not affected the price in the long run but have often temporarily shifted the price in a negative way.
War and Conflict
- War on Terrorism in Iraq and throughout the world
- Conflict with the Koreas
- Conflict between Israel and Lebanon
- Conflict wit Iran and it's Nuclear weapons
Natural Disasters
- Hurricane Katrina
- Massive Fires throughout the Country
Civil Events
- Labor Strikes
- Elections/What party is in office at the moment
As shown in the above graph the war with Iraq, Hurricane Katrina and conflicts with Venezuela, along with other factors involving OPEC have caused the price of oil to fluctuate. Events such as Hurricane Katrina cause an increase in the price of oil due to a shortage in resources, a lack of transporatation and power outages.
