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# Despite the approach of winter, oil prices to industrial

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Manager
Joined: 09 Jul 2007
Posts: 241
Despite the approach of winter, oil prices to industrial [#permalink]

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03 Sep 2008, 20:22
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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
Joined: 26 Mar 2008
Posts: 99
Schools: Tuck, Duke
Re: CR oil and gas [#permalink]

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03 Sep 2008, 20:29
IMO B
Manager
Joined: 21 Aug 2008
Posts: 204
Re: CR oil and gas [#permalink]

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03 Sep 2008, 21:02
arorag wrote:
IMO B

Agree. Oil vs. Natural gas in terms of usage should be related...
Senior Manager
Joined: 16 Jul 2008
Posts: 289
Re: CR oil and gas [#permalink]

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04 Sep 2008, 01:20
Agree with B.

We are looking for an answer, which confirms the correlation between the price of oil and the price of gas. B is the only one.
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SVP
Joined: 17 Jun 2008
Posts: 1547
Re: CR oil and gas [#permalink]

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04 Sep 2008, 01:33
Why C cannot be the answer? This also confirms low price of natural gas.

What is the OA?
Senior Manager
Joined: 16 Jul 2008
Posts: 289
Re: CR oil and gas [#permalink]

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04 Sep 2008, 01:50
scthakur wrote:
Why C cannot be the answer? This also confirms low price of natural gas.

What is the OA?

C points out that the supply of oil and gas will not be disrupted by winter. This is not relevant to the argument, firstly because winter could, for example, have an effect on the demand. Second, the passage clearly states that this year winter does not have an effect on the price of oil, although in most cases it should. So, we are looking at some explanation that is not related to winter.
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Director
Joined: 30 Jun 2007
Posts: 786
Re: CR oil and gas [#permalink]

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04 Sep 2008, 14:13
A Long-term weather forecasts predict a mild winter. [ Has no effect on the prices to industrial customers]

B The industrial users who consume most natural gas can quickly and cheaply switch to using oil instead. [ Hold it]

C The largest sources of supply for both oil and natural gas are in subtropical regions unlikely to be affected by winter weather. [Irrelevant – no correlation with Weather and price ]

D The fuel requirements of industrial users of natural gas are not seriously affected by the weather. [ With this choice we need to stretch the argument that Fuel requirements causes the prices to go up – and nothing in the argument that alludes to it ]

E Oil distribution is more likely to be affected by severe winter weather than is the distribution of natural gas. [But this is opposite of what argument is concluding]

B for me!
Manager
Joined: 09 Jul 2007
Posts: 241
Re: CR oil and gas [#permalink]

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04 Sep 2008, 14:27
1
KUDOS
OA is B.

I agree with the OA and I got it right ; but I have observed that GMAT does not want is to think too much in CR questions .. and if we think to much we assume some things and the end up providing wrong answers..but in this question we had to do some assumptions :

industrial users who consume most natural gas can quickly and cheaply switch to using oil

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.

to join the two, it should go like..industrial users swith to oil.. so demand for natural gas will decrease.. which will decrease ( or maintain the same price ) of natural gas ..

this requires assumption that we have adequate supply of oil + natural gas supply will not decrease etc.. too much of thinking.. unlike GMAT CR

Do you guys agree ?
VP
Joined: 17 Jun 2008
Posts: 1381
Re: CR oil and gas [#permalink]

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05 Sep 2008, 23:53
ssandeepan 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.

Clearly states B
Witrh approach of severe winter oil prices remain low and NG prices are high ,hence B which states industries should switch rightly supports !!!
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Posts: 10149
Re: Despite the approach of winter, oil prices to industrial [#permalink]

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27 Jul 2014, 01:02
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Re: Despite the approach of winter, oil prices to industrial   [#permalink] 27 Jul 2014, 01:02
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