Has the Iraq war been a factor in the oil price rises?

Question

Please give full description/explanation, along with sources.

Answer 1

Directly, not really. When we invaded Iraq, oil prices actually dropped because investors thought there would be a quick end to any hostilities that would block supply (and there was a quick end). Demand from growing China (who was hoarding Oil and other materials and supplies for the Olympics) and India (which is growing into an automobilized nation), along with just plain speculation (peak oil), is what's mostly causing the oil price rises.

But indirectly, the war is putting the US in even greater debt ($561b to date I believe). We respond to this by simply printing more money and lending from China, which reduces the value of the US Dollar. When the Dollar value goes down, oil prices (and everything else) goes up.

The trick to reduce gas prices is to increase the value of the Dollar by cutting spending at a Federal level. And encourage citizens to drive fuel efficient or, ultimately, fuel-free vehicles powered by domestic energy, like the upcoming electric Chevy Volt.  

Answer 2

It's the same as everything else in life. What ever is desirable is valuable. So because the oil is running out, it makes business sense to put up the prices as countries fight to stay economically strong.

Answer 3

There are tons of news stories about violence and unrest in Iraq that followed the Iraq war.  

Oil production in Iraq has declined as a result of this violence and insecurity.  And exploration for new oil wasn't done much either.

Iraq has the world's third largest reserves of oil.  And decreased production of oil in Iraq definitely decreased world oil supplies and increased the price of oil.  This is just common sense.

Answer 4

Not really.

Demand for oil by developing nations such as China and India have resulted in higher prices.

Let us not forget the domestic taxes that are levied on the oil companies.

Corporate taxes are always, ALWAYS passed on the consumer.

So, thank your local, state and federal politicians for the high prices.

There should only be a sales tax only on the end product.

Eliminate all property taxes and the prices of all goods would drop.

Personal Property meaning: ones personal income, land, and etc.

No Taxes on oil, means cheaper gas!

No taxes on food, means cheaper food!

No taxes on income, means more income!

No taxes on businesses, means more jobs!

No taxes on property means, less government control!

Less government control = more liberty!

Who would not want that?

For state and city/county budgets a sales tax is the way to go. And for the Federal government tariffs equal to state sales tax rates are the way to go.  

What has free trade done for American jobs and product quality anyhow?