What is the true, valid, and easy to understand reason why oil prices rises so fast?

Question

What is the true, valid, and easy to understand reason why oil prices rises so fast?

Answer 1

the demand is high and the supply is low

One of the OPEC countries is objecting on increasing the supply

Iran says that it will stop all the oil path ways of the Gulf area , so the suppliers believe that they will not be able to export oil in the future, thus they increases the prices in order to compensate on their future loss.

the suppliers have to compensate the increases in the added value costs. so they increases the prices

Answer 2

And the rich just keep getting richer! La la la la la!

That's part of my new song...

Answer 3

Because someone wants More of Your money

Answer 4

I bought millions and millions of barrels of oil when they cost $60--$100 a barrel. I expect to make a kill when I sell. But right now it’s only over $140 a barrel. So here is my difficulty :

I have requested my agents spin the media, like: “Oil future looks high, expecting to be in the range of $200 a barrel soon”   But it does not work price up fast enough.

I have paid the mainstream media, the Think Tanks,  and the major PR talking heads,  to spin China and India (supply and demand) responsible for price hike, to deflect American public anger. But that does not go far enough.

Right now, I am extremely nervous and worried. I urgently need a prey to buy those “paper barrels” on my hording. So I can profit.  But where can I find my prey ?  

ADD:

Airline industry has requested and demanded Congress stop oil speculation. I have my lobby on Capitol Hill work the Senators and Congressmen around the clock. But I do not how long they can hold.

Airlines urge Congress to curb oil speculation

http://www.boston.com/business/articles/...

Answer 5

Speculators are buying as an investment coupled with increasing demand and the general state of world politics.

Answer 6

they price it so high you will use less, therefore helping slow down the greenhouse effect, and make money at it at the same time. do you actually think people are going to cutback voluntarily ?

Answer 7

Law of Supply versus Demand.

Besides increasing demands in the United States, India has 1.2 billion people now.  And, they are getting industrialized.  I'm sure you've noticed a lot of American jobs going to India.  A lot of people in India are "getting up in the world", moving to cities, buying cars, using more electricity, etc. etc.  Same goes with China - go to Wal-mart and you'll see almost everything is made in China.  So, they're "getting up in the world" as well, requiring more and more energy.

Demand goes up, Supply remains the same, Price goes up.

Well, supply has been getting lesser as well.  Too much political turmoil in the oil-producing countries.  They choke up supply, prices go up.