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# Despite the approach of winter, oil prices to industrial

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

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07 Aug 2006, 18:56
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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.
Manager
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07 Aug 2006, 19:12
will go with B.

Oil prices are low ==> ? ==> Natural gas prices will be low
? should be B
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You go, we go

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07 Aug 2006, 20:01
E for me..
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07 Aug 2006, 21:52
I'm going with B on this one. The logic makes sense if they each is a substitute for the other.
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07 Aug 2006, 21:56
Will go with B.

Price increases when supply is low and demand is high.
If the price of natural gas increases, industrial customers can switch to oil and demand for natural gas will decrease, hence pulling down the prices for gas.
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07 Aug 2006, 22:03
Will go with E
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Hema

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07 Aug 2006, 22:49
I bombed this question last time... this time it's B for sure
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07 Aug 2006, 22:52
I'll go with B as well.
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07 Aug 2006, 23:13
Straight B.
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SAID BUSINESS SCHOOL, OXFORD - MBA CLASS OF 2008

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08 Aug 2006, 06:26
OA is B
08 Aug 2006, 06:26
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