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

Question

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 
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 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.

gmatmba · Answer

B

paddyboy · Answer

A

a) weather forecast is favourable, so supports argument.
b) out of scope
c) if this had been the case, then winters would never affect it. since argument mentions case for this year only, prefer A to C.
d) requirements? no... costs, yes!
e) not providing any support to either side...

On second thoughts... the question is about relation b/w oil and gas prices. So could be C as well... still think B is out of scope :roll:

u2lover · Answer

I was looking for something that relates to weather
to tie the oil and gas together... 
wow... that's a poem!

(A) Long-term weather forecasts predict a mild winter. 
(B) the argument isn't about switching from one to the other... out of scope
(C) my 2nd choice, but if this is the case why are they mentioning approach of winter and "this year"... seems like this would be the general case every year.
(D) opposite is likely to be the case... since prices both depend on weather
(E) nope, they are the same... thus the price affect is the same

so b/w A and C, but prefer A as it seems to be less genera and applicable to specific "this" year

deowl · Answer

B it is

Futuristic · Answer

I'd go with A. It directly presents a scenario which confirms one of the conditions for low prices of natural gas.

laxieqv · Answer

bet B on this one.

jaynayak · Answer

Your bets on the right money.

It is B. I am sure a lot of people of would like to know how it is the right answer

laxieqv · Answer

B talks about an aspect of economics that is subtitutional products. Herein, "natural gas" and "oil" are substitutes to one another. Back to the argument. It says: if the winter is severe, the price of natural gas will increase. That is to say, once the winter is severe, the oil prices will increase --> this makes people shift to using natural gas --> once the demand increases, the price will increase provided that the supply is unchanged. But this argument needs a confirmation that there's no cost ( or low cost) involved for people to switch from oil to natural gas ---> this is exactly what B provides! Anyways, i think this CR calls for some out-of-scope knowledge

MA · Answer

agree with B and your explanation.

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

Prep Toolkit

Top 5 GMAT Debrief Videos

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards