Why is crude oil rising in price?

Because oil resources dont grow with growing amount of usage of crude oil resources reamin static and usage grows dynamicallyWhy is crude oil rising in price?
hmmmmmmmm - what was the formula again - what ever it was only the most ignorant and biased among us think it's ';higher demand = blame Bush';





No, No, no, I got it, Haliburton has a lot of high salaried execs to pay -





Yeah folks, crude oil is really different than the other 10,000 commodities traded on the world market.





When we have terrible winters that affect crop production ie., reduced supply - market prices adjust by prices going up





When you have the economies, business sector and personal incomes of 2 countries which have in excess of 2.4 BILLION people exploding you just might experience a slightly higher level of demand in oil, ie., prices go up.





Now, was that sooooo hard. Get to your next class.Why is crude oil rising in price?
You have officially put your finger on the point of America going to war in the Middle East, and why we're definitely invading Iran next. If you think gas prices are high now, wait until the Iran invasion. Get ready to pay over 4 bucks a gallon. People die for profit in these times.
Greed.
I find it interesting that entertainers, professional athletes, movie and tv stars can demand huge million dollar salaries and no one seems to give a crap, yet let someone make money off of an internationally traded commodity and they're labeled as greedy, money grubbing, etc. Nice little bit of hypocrisy there, folks.
They just are not rich enough. Plus I think they like making us broke.
3 Major reasons (nothing to do with rich people)





1. Iran holds a major oil supply and with the nuclear problem there is a possible threat of Iran holding off oil to the U.S. although it is unlikely since much of Iran's revenue comes from selling oil to us.





2. At this time of year gas has to change the way it is mixed from the old MTBE which has been found to leak into water systems to ethanol. But since ethanol can mix easily with water, any water in the gas carriers need to be cleaned. This process is expensive and takes a large amount of time which is causing gas shortages.





3. Terrorism in Nigeria has been causing less production.





Solutions Bush gave





1. Reduce emission standards temporarily to get gas out sooner.


2. Release 12 million barrels of the U.S. stock supply.


3. Investigate corporations for price gouging.





Will these solutions work? No.





Reducing standards won't get the price down, but however it will get gas to the pump sooner.





The U.S. uses an average of 20 million barrels of oil a day, so releasing 12 million wouldn't even be effective for a whole day.





Price gouging isn't likely happening, considering everything has a reason. Although, some economists think that gas should have no reason to ever reach or pass the $3.00 unless a barrel of oil is $90. But of course, supply and demand changes that.





If nothing else goes wrong gas will most likely be $2.62 on average in the summer.





Good news is that the rising gas prices haven't hurt the U.S. economy or consumer spending as it was predicted crude oil hit $50 a barrel. But its just a matter of time people stop spending and the economy goes into a minor recession because of gas. Unless more money comes into the economy and inflation goes down, of course.





There is a theory going around that if you stop purchasing gas from ExxonMobil then they will be forced to reduce their prices and so will everyone else in order to keep up with competition. I doubt it will work since most gas stations are only 3 cents off from each other.





Also a plan to try to tax windfall profits on gas companies would ease pain as it would be filtered back to taxpayers, but there is a slim chance of it passing.





Some have suggested forcing ExxonMobil to break up into different companies and personally I think that would reduce prices a little.





In short, there are no short-term solutions. It will be months before we see a significant change.
there are many answers to this. the rich want more money, is one idea.


supply and demand is another. supplies are left for another 150 years and the amount we consume rises every year. it may not last teh entire 150 years or the estimated amount.





then the war in Iraq. the Iraqis burnt their oil wells while fleeing and this leaves Iran and Saudi the only few major oil producers in the area.





tension that is growing on Iran due to this nuclear ambitions also causes the price of oil to soar.





the stock market is not helping exactly either. as there is growing concerns of an Iranian Invasion.
Because the rich want more money
Because oil tycoons want more money than they could possibly spend in 1000 lifetimes. Whats wrong with having enough to live luxuriously? Why do you need more?
Because we're using it up. The less there is, the rarer it is, and the more the price goes up. Soon it will all be gone and we'll all be screwed.
Because their is no more of it being made.
Iranian nuclear situation, plus unrest in Nigeria.
Because the rich people are manipulating the market and want more of the poor peoples money.
supply and demand, nigeria, Iran, Iraq, Venezuela, China needing more, India needing more, It's all about Supply and demand and world situations. It wouldn't be so bad if we didnt go into Iraq. So yeah it's a little screwy and doesn't look like it's getting much better.
Easy, supply and demand. The supply of oil has remained stagnant. No new major drilling operations have come online in the past few years. While, the demand of oil has increased greatly over the last few years with increased demand coming from rapidly developing counties (China and India mainly). Plus, our SUVs are thirsty, so you know US demand is growing rapidly!
Contrary to popular believe, the president, or even the oil companies don't set the price, the market does. With that said, there is much uncertainty and demand in the market right now for oil, that it drives the price up. The governemtn makes more on a gallon of gas than oil companies do, because of the taxes on gasoline. If we should be mad at anybody it should be them.
Several reasons.





1) We are nearing peak oil. The earth containes limited oil and we are consuming more.


2) The oil companies know we are nearing peak oil and that their businesses are getting ready to lose what they know and do. They are charging more and more for their products.


3) Along with #2, but I think a more important component, GREED. On a $70/barrel purchase, the gas companies make $210. All oil companies are experiencing record profits, but they say that it's because of the demand for their product that has grown. This would be ok unless you look at the math. Just last night I read a report that Mobile posted a 7% profit on top of last year's profit over the previous year's 13% profit. At the same time demand for oil products in the US has grown by 3%. Don't get me wrong, I'm all for companies making a profit but I seriously think this is gouging. The issue is, whether you like it or not, we need gas to survive. We need to get to school, work, the store to buy food. Many places do not have adequate public transportation (like where I live.)
Hi,


There is a wrong notion right now in the global market that, world oil reserve is going to be finished very soon and there are also fears about political conditions of the middle east , which along with the increased consumption is adding to the increase in the global oil price.


But, according to the experts there is no chance of running out of oil reserve in near future (at least in the next 100 years). The real reasons of the increase in global oil price are





1. Almost stagnant oil refining capacity. But, increase in oil consumption ( mainly by USA, INDIA and CHINA).


2.Some fear about the political conditions of the middle east.





But, this staedy rise in the global oil price can be checed if the oil refineries expand their capacities. And that is exactly being done right now by masjor Indian oil reineries.


But it will take some time to prepare those refineries and thus for at least next four years we will see oil prices hovering around and above $60 a barrel.