Question

Until the United States is self - sufficient in oil production, what impact do international events have on the price we pay at the pump? Select all correct anwers.

-Higher global demand creates increase in price at the pump.
-Lack of an increase in proven reserves of oil fields keeps oil somewhat scarce, and prices high.
-Disasters at refineries increase price at the pump.
-New technologies in alternative fuels offer choices for scarce dollars.
-Terrorism and wars near oil fields in South West Asia raise the cost of oil per barrel.

Answer 1

It could be argued that until the United States is self-sufficient in oil production, international events can lead to "Higher global demand [that] creates increase in price at the pump," since these events can often lead to a reduction in oil output.