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# Despite the approach of winter, oil prices to industrial

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Senior Manager
Joined: 07 Jul 2005
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Despite the approach of winter, oil prices to industrial [#permalink]

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09 Nov 2005, 11:25
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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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Director
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09 Nov 2005, 12:32
(B) Oil and natural gas are substitutes for each other.
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Auge um Auge, Zahn um Zahn !

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09 Nov 2005, 12:33
I will go with D. If D is correct I will explain it later.
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hey ya......

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Director
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Re: CR - Oil Prices [#permalink]

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09 Nov 2005, 12:47
I would go with C.

Conclusion is : The Prices of Natural Gas will reamin low.

Evidence : The prices of Oil are low and will reamin low.

so the statement which support both the above should be right (may be thinking too loud...... )

so if the weather is not going to affect the prices of Oil ...it should not affect the prices of Natural Gas.

rigger 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.

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Manager
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Re: CR - Oil Prices [#permalink]

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09 Nov 2005, 13:16
Could it be E?

If the weather is too severe, the distribution of oil will be affected, so more customers will have to use fuel, thus driving the price of fuel high.

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Manager
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Re: CR - Oil Prices [#permalink]

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09 Nov 2005, 15:18
D because if POE.

A No mention of LONG TERM
B where does it say cheaply and quickly?
C subtropical regions?
E more likely?

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Senior Manager
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09 Nov 2005, 16:15
The OA is B.

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Intern
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09 Nov 2005, 17:12
most possibly E

A"forecasts predict a mild winter" --NOO
B "cheaply switch" -- Naa
C "largest sources " does not mean anything to our statement
D "fuel requirements of industrial users "..this ,if true would contradict the increase in gas statement.
E Quite possible.It affects existing Oil. Gas derived from Oil .So, limited Quantity of Gas.So, Prices inflate during such situation. "distribution of natural gas" is not a problem here adding more weightage to this answer.

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Intern
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Re: CR - Oil Prices [#permalink]

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10 Nov 2005, 07:00
rigger 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.

I chose B.

B clearly shows the relationship of "oil price is low" -> "so natural gas is going to be low too because users can switch from natural gas to oil easily, which means that there is gonig to be less demand for the natural gas."

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Re: CR - Oil Prices   [#permalink] 10 Nov 2005, 07:00
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