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# Despite the approach of winter, oil prices to indus- trial

Author Message
Director
Joined: 12 Oct 2008
Posts: 539

Kudos [?]: 602 [0], given: 2

Despite the approach of winter, oil prices to indus- trial [#permalink]

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21 Jan 2009, 22:46
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Question Stats:

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. Despite the approach of winter, oil prices to indus-
trial customers are exceptionally low this year and
likely to remain so. Therefore, unless the winter is
especially severe, the price of natural gas to indus-
trial customers is also likely to remain low.

Which of the following, if true, provides the most
support for the conclusion above?
(A) Long-term weather forecasts predict a mild winter.
(B) The industrial users who consume most natural
gas can quickly and cheaply switch to using
(C) The largest sources of supply for both oil and
natural gas are in subtropical regions unlikely
to be affected by winter weather.
(D) The fuel requirements of industrial users of nat-
ural gas are not seriously affected by the
weather.
(E) Oil distribution is more likely to be affected by
severe winter weather than is the distribution
of natural gas.

Kudos [?]: 602 [0], given: 2

SVP
Joined: 17 Jun 2008
Posts: 1534

Kudos [?]: 279 [0], given: 0

Re: CR: Oil Vs Gas [#permalink]

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21 Jan 2009, 22:53
I will go for B. If the users of natural gas can switch to oil cheaply, the price of natural gas will not go up.

Kudos [?]: 279 [0], given: 0

Senior Manager
Joined: 02 Nov 2008
Posts: 276

Kudos [?]: 117 [0], given: 2

Re: CR: Oil Vs Gas [#permalink]

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21 Jan 2009, 22:55
scthakur wrote:
I will go for B. If the users of natural gas can switch to oil cheaply, the price of natural gas will not go up.

Yes, I also agree with B.

Kudos [?]: 117 [0], given: 2

Manager
Joined: 20 Mar 2007
Posts: 57

Kudos [?]: 16 [0], given: 0

Re: CR: Oil Vs Gas [#permalink]

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22 Jan 2009, 15:29
Caught between A and B.Selecting option A

Kudos [?]: 16 [0], given: 0

Director
Joined: 01 Aug 2008
Posts: 727

Kudos [?]: 845 [0], given: 99

Re: CR: Oil Vs Gas [#permalink]

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22 Jan 2009, 18:54
I choose E. B also fits I guess ...

Quote:
Oil distribution is more likely to be affected by
severe winter weather than is the distribution
of natural gas.

it says gas distribution is more reliable so no way gas price will go up....

But B also comes close..

Quote:
Oil distribution is more likely to be affected by
severe winter weather than is the distribution
of natural gas.

but looks like a shilling case..

what is OA and OE..?

Kudos [?]: 845 [0], given: 99

Intern
Joined: 10 Nov 2007
Posts: 13

Kudos [?]: 7 [1], given: 0

Re: CR: Oil Vs Gas [#permalink]

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22 Jan 2009, 19:02
1
KUDOS
Kiski wrote:
Caught between A and B.Selecting option A

Why? Can you explain it?

Which of the following provides the most
support for the conclusion above?

. Despite the approach of winter, oil prices to indus-
trial customers are exceptionally low this year and
likely to remain so. Therefore, unless the winter is
especially severe, the price of natural gas to indus-
trial customers is also likely to remain low
.

This is our conclusion.

(A) Long-term weather forecasts predict a mild winter. (forecast is do nothing with our prices... at least here;)) ...out!)
(B) The industrial users who consume most natural
gas can quickly and cheaply switch to using
oil instead. (PERFECT. Oil and gas are interchangeable - so if oil prices are "execptionally low = gas prices will be low too!)

Kudos [?]: 7 [1], given: 0

Senior Manager
Joined: 23 May 2008
Posts: 414

Kudos [?]: 461 [0], given: 14

Re: CR: Oil Vs Gas [#permalink]

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22 Jan 2009, 23:27
. Despite the approach of winter, oil prices to indus-
trial customers are exceptionally low this year and
likely to remain so. Therefore, unless the winter is
especially severe, the price of natural gas to indus-
trial customers is also likely to remain low.

Which of the following, if true, provides the most
support for the conclusion above?
(A) Long-term weather forecasts predict a mild winter.
(B) The industrial users who consume most natural
gas can quickly and cheaply switch to using
(C) The largest sources of supply for both oil and
natural gas are in subtropical regions unlikely
to be affected by winter weather.
(D) The fuel requirements of industrial users of nat-
ural gas are not seriously affected by the
weather.
(E) Oil distribution is more likely to be affected by
severe winter weather than is the distribution
of natural gas.

why can't it be A......

In the argument it has been mentioned " Therefore, unless the winter is
especially severe, the price of natural gas to indus-
trial customers is also likely to remain low".

so according to A Long-term weather forecasts predict a mild winter so the prices won't go up.....

I suppose this make sense..........

Kudos [?]: 461 [0], given: 14

VP
Joined: 18 May 2008
Posts: 1258

Kudos [?]: 530 [0], given: 0

Re: CR: Oil Vs Gas [#permalink]

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22 Jan 2009, 23:41
I am confused b/w A and B. Though B appears more tempting. If consumers switch to oil, then the demand for natural gas will remain low. Hence the prices will also remain low. hence B is my ans
. Despite the approach of winter, oil prices to indus-
trial customers are exceptionally low this year and
likely to remain so. Therefore, unless the winter is
especially severe, the price of natural gas to indus-
trial customers is also likely to remain low.

Which of the following, if true, provides the most
support for the conclusion above?
(A) Long-term weather forecasts predict a mild winter.
(B) The industrial users who consume most natural
gas can quickly and cheaply switch to using
(C) The largest sources of supply for both oil and
natural gas are in subtropical regions unlikely
to be affected by winter weather.
(D) The fuel requirements of industrial users of nat-
ural gas are not seriously affected by the
weather.
(E) Oil distribution is more likely to be affected by
severe winter weather than is the distribution
of natural gas.

Kudos [?]: 530 [0], given: 0

Director
Joined: 12 Oct 2008
Posts: 539

Kudos [?]: 602 [0], given: 2

Re: CR: Oil Vs Gas [#permalink]

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23 Jan 2009, 07:32
OA B

Kudos [?]: 602 [0], given: 2

Director
Joined: 23 May 2008
Posts: 801

Kudos [?]: 84 [0], given: 0

Re: CR: Oil Vs Gas [#permalink]

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23 Jan 2009, 11:55
can someone explain why "C" is wrong?

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Senior Manager
Joined: 02 Nov 2008
Posts: 276

Kudos [?]: 117 [0], given: 2

Re: CR: Oil Vs Gas [#permalink]

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23 Jan 2009, 17:17
bigtreezl wrote:
can someone explain why "C" is wrong?

Where the oil and gas is located is not relevant

Kudos [?]: 117 [0], given: 2

Director
Joined: 12 Oct 2008
Posts: 539

Kudos [?]: 602 [0], given: 2

Re: CR: Oil Vs Gas [#permalink]

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24 Jan 2009, 09:48
C is wrong because stimuli doesn't speak about the region

Kudos [?]: 602 [0], given: 2

Senior Manager
Joined: 23 May 2008
Posts: 414

Kudos [?]: 461 [0], given: 14

Re: CR: Oil Vs Gas [#permalink]

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26 Jan 2009, 22:09
Can someone explain why A is wrong............

Kudos [?]: 461 [0], given: 14

Re: CR: Oil Vs Gas   [#permalink] 26 Jan 2009, 22:09
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