Share
Explore BrainMass

roller-coaster price changes

Cover the rollercoaster price changes that have occurred over the past few years (oil, natural gas, other energy sources), and your thoughts on the future of energy sources and price stabilization.

- Discuss the drivers of energy price inflation and deflation
- Discuss the various stakeholder groups affected by unstable prices.
- Alternatives, are they here to stay?
- Opinion statement

Solution Preview

The roller-coaster price changes that have occurred over the past few years (oil, natural gas, other energy sources.

Cover the roller-coaster price changes that have occurred over the past few years (oil, natural gas, other energy sources), and your thoughts on the future of energy sources and price stabilization.

- Discuss the drivers of energy price inflation and deflation.
Political unrest and war is a strong driver of energy price increases. On the other hand recession leads to decline in demand for energy and deflation of energy prices. One strong driver of oil price inflation is the increase in the number of cars and vehicles in the developing countries. The increase in demand for transportation drives the price inflation of energy. The largest proportion of energy is consumed by the transportation sector. Economic growth in developing countries means an increase in demand for motor vehicles and airline service along with an increase in demand and prices of energy. A strong driver of energy price inflation is the relatively rapid increase in population. Limited supplies of oil and lower supplies are a strong driver of energy price inflation. Another driver of energy price inflation and deflation is financial speculation. Another driver of energy price inflation is the loose money policy of the Federal Reserve. This leads to ...

Solution Summary

This answer provides you an excellent discussion on roller-coaster price changes

$2.19