Causes of Fuel Price Fluctuations

In the first news article, gasoline prices determine the economy of a country such as the

United States of America and vice versa. As more and more vehicles get on the US roads the gas

prices are impacting the overall national consumption patterns. While in 2008 the national average

was above $4 gallon, sometimes prices are known to reach $1.85 a gallon in November. Hence the

gas prices remain to be bound by two extreme ranges and there is a certain figure of price

expectation in the prices for the year. Hence gasoline prices could raise influencing US

Government's policies. the global determined prices of these essential commodities and the impact

of natural disasters.

In the second news article, the prices have very between production prices will ensure that

motorist will overcome the Americans method to pump and consume, with overall economic

forward movement. The price drop is attributed to basic supply and demand. American crude a

production and improved fuel efficiency. Additional gasoline is linked to the crude oil prices and

hence it is seen that oil prices globally will determine the overall prices from time to time.

In the chosen journal article, by Wang, T., Zhang, D., & Broadstock, D. C. (2019).

“Financialization, fundamentals, and the time-varying determinants of US natural gas prices,”

fluctuation of gas prices and the factors that drive the fluctuation are discussed in detail. The

variety of factor appears to be seasonal, influenced by regulatory modes and applied by the state of

the government. The demand will be remain flat and the supplier will rise in the US which means

Asia economies will be also dependent and all oil for stock hence the several factors that determine

the price of oil are as follows the linked with the crude oil the political stability of the countries and

the economic activity of each of these countries much of recent development of oil prices has been
due to China which has important oil on very large scales to drive its modernization and expansive

and expansion process.

In the second journal article is by Hailemariam, A., & Smyth, R. (2019), titled “What drives

volatility in natural gas prices?” in this article the authors discuss SHVAR model or structural

heterogeneous autoregressive VAR model to include structural breaks in the co-efficiency and

volatility on a monthly basis, concluding that response to natural gas prices is significant dependent

on regime as well as type of shock which is the determining factor in natural gas markets.

References

Hailemariam, A., & Smyth, R. (2019). What drives volatility in natural gas prices?. Energy

Economics, 80, 731-742.

Wang, T., Zhang, D., & Broadstock, D. C. (2019). Financialization, fundamentals, and the

time-varying determinants of US natural gas prices. Energy Economics, 80, 707-719.

https://www.csmonitor.com/Environment/2014/1031/Why-do-gas-prices-rise-and-fall-5-

driving-factors/Oil-A-volatile-commodit

yhttps://www.forbes.com/sites/eco-nomics/2012/03/05/five-reasons-gas-prices-

rise/#6a53f5a21e02