Business, 30.11.2019 04:31 leopolddc4006

Mighty oil and super gas sell and buy crude oil, respectively. super gas uses the crude oil to produce gasoline and wants to insure against input cost increases. suppose that on december 1, 2014 the price of crude oil is $62.30 per barrel. mighty oil and super gas enter into a contract on december 1, 2014. the contract specifies that mighty oil will deliver one million barrels of crude oil to super gas on february 27, 2015 for $65 per barrel. 1. the contract that mighty oil and super gas have entered into is called a 2. which of the following may be a reason for super gas entering into the contract? a. super gas is the sole provider of gasoline to the city of burntcorn. it is considered a natural monopoly, and the local government regulates it. as a result, super gas cannot increase the price it charges residents until the end of 2015. b. super gas forecasts that the price of crude oil will (very likely) be less than $65 a barrel on february 27, 2015. c. the institute of supply management's manufacturing index unexpectedly fell to 49.5% in november from 51.2% in october. this ignited fears that the u. s. economy was tipping into a recession.

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Mighty oil and super gas sell and buy crude oil, respectively. super gas uses the crude oil to produ...

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