What caused oil to go up in cost so much?

Question

What caused oil to go up in cost so much?

Answer 1

Weak Us Dollar, speculation, supply and demand (less oil in the world everyday, more people need it everyday, China and India account for about a third of the world and they are quickly industrializing), and a variety of other variables that affect short term prices (disasters or wars).

Answer 2

MANIPULATION of the markets.

Sure India, and China are using more, but 40% year over year is not justified.  Thier economies do not grow that fast combined.

2nd

I think the price is being manipulated by Liberal Money Men who want you to run to Solar, Wind, and Nuclear as a solution.  Obviously these people have position in these companies.

1st.

The U.S. Dollar is getting hammered.  People whom used to be perfectly fine investing in Tresury notes (The US Credit Card) are seeing thier investments dwindle.  If I could buy 2 bushells of corn last year for 6 US, and it now cost me 14.  I would need to raise my product cost also.

The end is coming for US Comsumer, and Govenment borrowing.  A dollar is now worth .10 cents of what the same dollar would buy in 1972 when the US was on the Gold Standard.

Government, and Consumer borowing places competition for goods => which is a direct cause of inflation.  If you cannot afford it you do not need it.

The Government is printing so much money now - they do not even want to officially track it.  

There used to be a measure call the M3.  This counted how much US currency paper, and electronic was out in the world.  This number was used to determine if an investor should start shifting money to Gold as real inflation was on the rise.  The Treasury dept 2005 now says it is too expensive to track - can you beleive that a gov. agency saying something is too EXPENSIVE.  Funny the Bank of England still does track the amount of US currency in the world - un-officially.

Answer 3

People bidding for more of it than could be currently supplied.

Answer 4

The simple ans. is supply and demand.  China and India are starting to really have a large need for Oil.  

The more complete answer involves greed as well from speculators who have been driving up the price on the world future markets, as well as spikes every time there is rumblings in the Middle East

Answer 5

different types of oil exists,

oil that's produced

oil that's sold.

there's no problem with production, but there's on selling side.

financial markets buying and selling without seeing any oil but certificates. So, the prices up because of these, not the oil itself.

Answer 6

The US is too dependant on foreign oils beacuse we wont drill for it over here. And now that we are at war with one of the top oil contributing countries, our prices go up.

It also has to do with supply & demand.

low demand+high Supply=lower prices.

high demand+low supply=higher prices.

AND our oil companies are greedy.

so the more they charge for oil, the more profit they get-making them even MORE filthy rich.