Why they can't lower the price of OIL?

If laws of economics to be applied? To curtail the increase in price of oil, isn't it we must just increase the production to supply the demand?





Why America is not using the oil reserves to help the American people? This is the best time to use it now and lower the per gallon and decrease the inflation.Why they can't lower the price of OIL?
America is not using the reserves of other countries because it's the OTHER countries oil. Our strategic reserves are meant for extreme conditions and it will only last for a short time. Tapping into it now will only leave us open to an even more dire situation later. The US has a vast supply of oil on our own soil but we are prevented from accessing it because the Democrats and Liberals are afraid it would scare the deer or something.Why they can't lower the price of OIL?
US and the world are running out of oil no matter of politics. Report Abuse

Speculation....is being applied, the laws of supply and demand are not raining in.





Speculation in this case is when an individual buys a barrel for 'x' amount of money now and expects to sell it at 'x+1' value in the future. The result is that as long as speculation is the king in this market prices will always go up.





How is this possible? currently oil is an inelastic good with no readily viable and accessible substitute for the average consumer.
OPEC would cut production to keep the supply constant so it would not reduced the price anyway, and the the reserve would be depleted. It is there to cushion American economy from supply interruptions and we may need it at some future time and should not fritter it away in a hopeless attempt to control prices.
It will when Bush leaves office and takes his goofs with him.
greed my freind , greed
2/3 of the world's supply is in the Persian gulf.


With OPEC and non-OPEC suppliers supplying us with oil we our controlling our own demand.


Prices keep going up...because we keep paying the higher price.





If we stop this victimizing and start finding alternate methods we maybe able to control our own destiny however the ';poor me, oil is so expensive'; attitude makes us desperate and we pay anything for oil.








US and China max out the refineries so when one shuts down the supply lessens but the demand remains the same and price increases.
America is part of the world market. Selling oil to its consumers below the world price will cost the American government the difference. Ie if the price of fuel is $3 on the world market and the government sells it to consumers for $2 then for every unit the US government would be subsidising the consumer $1.





this would cause the us government to go broke or at least raise taxes to pay for this subsidy.





the price of oil is rising because the quantity of oil supplied is stagnant and its price of supply is slightly increasing COMBINED with massive increases in demand for oil in the last 10 years from india and china.





add to that speculators have bought oil as an alternative to equities (as equities fall through the floor) further increasing the market price of oil.





america is increasingly effected by this price because of the lower value of the american dollar.





in other countries such as australia, which has seen our dollar rise dramatically in value compared to the USA, the price of oil to us has not risen that much in real terms. because oil is quoted in US dollars any weakness in the US dollar will increase the price.
';They'; are quite happy about the high price, because they are entwined with the oil industry, from Texas to Saudi.
We are mislead and US and global economy will get really worst in coming time.





Alternative products can affect on market price in the free marketing economy. Crude oil price increase and mild inflation maybe actually good for high cost of alternative bio oil.





Arab oil owns 10% of USA. Might be a certain big block has inhibited American growing castor beans to replace oil imports.





Many parts of the world have used castor oil to run motor since a long time ago. One acre yields $500-700 in 4 months or from $1500 per year without needs of water.





Deserts of Australia, some South America, and especially Africa, which can exchange castor oil for foods, can supply the world at least 5 times it needs. French has also supplied some for their own needs. India started exporting castor engine oil to US. Currently Singapore is the most holding of all castor plantations and production in Asia and maybe they will dominate world market before US.
The first one is totally and completely correct...GREED