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Business Abstract #2

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Business Abstract #2 With the steady rise of gas prices across the country, people are buying less fuel for their use. Compared to last year’s statistics, Americans have bought less gas for the past five weeks. December was the last time there was such a low demand for fuel, but this was because the snowstorms caused Americans to cut back. Before this current decline, the demand for fuel was on the rise for two months. Analysts expected the trend to continue due to the economic recovery improving, but according to a March survey by the Oil Price Information Service, sales have fallen at 70 percent of the nation’s major gas station chains. Even as gas prices continue to rise, people are still having issues with saving. This is because the cost of gas is going up faster than people can cut back on spending. Compared to last year’s prices, gas is 32 percent more expensive than it was in April 2010. The price of fuel has risen due to unrest in North Africa and the Middle East causing an increase in global demand for crude oil which squeezed the supply. Majority of the analysts forecast a high of $4 a gallon but some foresee $5. Drivers across the country are hunting for cheaper gas, some using the help of a mobile phone app. Other drivers are starting to consider the mass transportation systems within their area. There are also owners of SUVs trading them in for more fuel efficient models. This is evident with sales of the Hyundai Sonata and Elantra increasing by 55 percent in March. Even if the demand for gas continues to fall in the United States, it probably won’t cause the price to drop. This is because the worldwide demand is too high for crude oil. Global demand for oil is about 87 million barrels a day and is expected to grow to more than 88 million barrels a day by the end of the year. In the United States, many drivers are

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