Oil prices have only gone up a few cents at a time. Why is everyone reacting so much?

Hello, the detailed explanation is as follows:

Although the rise in oil prices is only a few cents at a time, it has a wide and far-reaching impact on people's daily lives, which is why everyone reacts so fiercely.

First of all, the rise in oil prices directly affects people's transportation costs. In modern society, the number of private cars is increasing, and the fuel cost is one of the essential expenses for every owner. Once the oil price rises, people's commuting expenses will increase, which will put some pressure on the family economy. In the family budget, transportation costs usually account for a considerable proportion, so a slight increase in oil prices will also increase people's economic burden to some extent.

Secondly, rising oil prices will also trigger inflation. Higher oil prices mean higher production costs, which will directly lead to higher commodity prices. Because oil is an important energy source in the process of production and transportation, rising prices will increase the operating costs of enterprises, which will eventually be passed on to consumers, leading to rising commodity prices. When prices rise, people's purchasing power will decline, thus affecting people's living standards.

In addition, the rise in oil prices will have a chain reaction to the macro economy. High oil prices usually lead to an increase in inflation, thus affecting the stability of the entire economic system. As oil is an indispensable resource in international trade, rising oil prices will lead to rising import costs, thus expanding the national trade deficit. At the same time, high oil prices will also drive the development of the energy industry and promote the research and development and investment of energy technology and renewable energy. However, in the case that the energy structure is not adjusted to a high proportion of new energy, the rise in oil prices may lead to domestic economic instability and even employment problems.

Therefore, although the oil price only rises slightly every time, it has an important impact on people's daily life, economic pressure and macroeconomic stability. This explains why everyone reacts so strongly to the rise in oil prices.