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# Despite the approach of winter, oil prices to industrial

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Director
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Despite the approach of winter, oil prices to industrial [#permalink]

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19 Sep 2005, 19:36
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Despite the approach of winter, oil prices to industrial customers are exceptionally low this year and likely to remain so. Therefore, unless the winter is especially severe, the price of natural gas to industrial 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 oil instead.
(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 natural 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.
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Cheers, Rahul.

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Re: CR - Oil prices [#permalink]

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19 Sep 2005, 21:50
(B) The industrial users who consume most natural gas can quickly and cheaply switch to using oil instead.

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Manager
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Re: CR - Oil prices [#permalink]

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20 Sep 2005, 00:44
rahulraao wrote:
Despite the approach of winter, oil prices to industrial customers are exceptionally low this year and likely to remain so. Therefore, unless the winter is especially severe, the price of natural gas to industrial 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 oil instead.
(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 natural 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.

B

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20 Sep 2005, 02:41
why not C ?

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20 Sep 2005, 06:12
Antmavel wrote:
why not C ?

In my opinion, it's not C ecause the question is not about who provides the oil, but about who consumes the oil.

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20 Sep 2005, 13:49
I am totally lost,
Probably I will pick B.
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hey ya......

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20 Sep 2005, 13:58
I also think it's B.

If oil is cheap, people who would otherwise use gas can switch to oil. Therefore, the demand for gas would decline, and the price of gas would therefore remain low.

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20 Sep 2005, 16:52
I also take B

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20 Sep 2005, 18:59
OA is B!
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Cheers, Rahul.

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20 Sep 2005, 21:05
rahulraao wrote:
OA is B!

Can somebody pl. explain how B supports the conclusion that the natural gas prices are likely to remain low. My logic says that only if the prices go up, the industrial consumers would switch from gas to oil. So, the conclusion would already be wrong.
Am I missing something here?

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20 Sep 2005, 21:05
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