Is the war in Iraq and Afganistan make the prices of crude oil keep on increasing?Is this the major factor?

Question

or any other major or important factors

Answer 1

NO

Afgan is not an oil producer at all

Iraq production is higher now than before the second war.

It is nearly all a demand pull problem. Demand continues to increase year over year.

Also some supply push issue. Production is increasing but it is becoming more expensive to extract oil. There is still plenty but costs are rising

Answer 2

No, Afghanistan and Iraq are not major producers and they are working near at a good capacity.

The problem is two fold.

One: There is not enough oil being produced to cover the demand, which is going up.

Two: people find Oil and other commodities to be a good investment, so they buy it and the price goes up.

The price of oil will fall to a stable level within the next year.

Around $50-$70/bbl