Why do oil & gas prices keep on going up?

Question

Twenty years ago, 21 percent of oil contracts were

purchased by speculators who trade oil on paper with

no intention of ever taking delivery. Today, oil

speculators purchase 66 percent of all oil futures

contracts, and that reflects just the transactions that

are known. Speculators buy up large amounts of oil and

then sell it to each other again and again. A barrel of

oil may trade 20-plus times before it is delivered and

used; the price goes up with each trade and consumers

pick up the final tab. Some market experts estimate

that current prices reflect as much as $30 to $60 per

barrel in unnecessary speculative costs.

Over seventy years ago, Congress established regulations

to control excessive, largely unchecked market

speculation and manipulation. However, over the past

two decades, these regulatory limits have been weakened

or removed. We believe that restoring and enforcing

these limits, along with several other modest measures,

will provide more disclosure, transparency and sound

market oversight. Together, these reforms will help

cool the over-heated oil market and permit the

economy to prosper.

The nation needs to pull together to reform the oil

markets and solve this growing problem.

We need your help. Get more information and contact

Congress by visiting StopOilSpeculationNow.com.

http://www.unitedoffers.com/600-1sape/101395/235992/04e4faa32f7a10c11ec36cca02bf5395

Robert Fornaro

Chairman, President and CEO

AirTran Airways

Bill Ayer

Chairman, President and CEO

Alaska Airlines, Inc.

Gerard J. Arpey

Chairman, President and CEO

American Airlines, Inc.

Lawrence W. Kellner

Chairman and CEO

Continental Airlines, Inc.

Richard Anderson

CEO

Delta Air Lines, Inc.

Mark B. Dunkerley

President and CEO

Hawaiian Airlines, Inc.

Dave Barger

CEO

JetBlue Airways Corporation

Timothy E. Hoeksema

Chairman, President and CEO

Midwest Airlines

Douglas M. Steenland

President and CEO

Northwest Airlines, Inc.

Gary Kelly

Chairman and CEO

Southwest Airlines Co.

Glenn F. Tilton

Chairman, President and CEO

United Airlines, Inc.

Douglas Parker

Chairman and CEO

US Airways Group, Inc.

Answer 1

Prices keep going up because someone is willing to keep paying more.

Prices keep going up because shortages in supply, real or perceived, are convincing those who speculate that continued investment makes good sense. Especially when the US dollar and stocks, bonds and other investment vehicles are going the other way.

Prices keep going up because many factors influence supply or lack of it:  Geopolitical tensions, strong demand, heavy governmental restriction on drilling are just a few.

Speculative bubbles never last.  The thing is whether they leak air slowly, or explode, as the real estate speculation bubble did.  

My belief is that the oil bubble won't burst, it'll leak air slowly.  Already, high prices are dampening economic growth, which slows demand somewhat.  More individual voter pressure is needed to get Congress to stand up to the enviro-lobby and go get some more oil.  Alternative energy sources, or the threat of them, puts pressure on OPEC to drill more (like they did in the mid to late 1980s, which depressed the oil market, collapsed the shale oil tech push in Colorado, killing the Denver economy.  Texas and Oklahoma got hit pretty hard, too).

When enough of these factors come into play to put downward pressure on oil prices, the speculators will look for more favorable places for their money.  But it won't happen suddenly, with a huge drop in prices.  There are too many people in government that want power and the ability to tax, and have latched onto the Global Climate Change hoax as the perfect vehicle to be able to tax and control, and too many sheep who believe it and will follow along blindly, changing the way they live and paying more for it, while those in power continue to drive and fly whatever and wherever they want with no intentions of changing their behavior.  There is a strong desire in governments around the world to keep oil prices high - not so high that it kills the world's economy, but high enough so that cheap gas does not once again make it affordable for people to exercise their freedom. So you're never going to see $2 gas again.

Answer 2

Because Americans have lost the ability to protest and boycott businesses who treat us like Dirt! 20 years ago young people would've left colleges all over the country and marched on Washington and people would've stopped buying gas and boycott the high prices until we made a difference.

Today's youth don't give rat's buttocks about anyone else--driving their dad's SUVs and partying at college--is all they care about.

And old people are just too apathetic or lazy or just little sheep who cannot make a difference in their own lives so why try to change bad business practices.

I never drive anymore and only buy gas one day aweek and encourage all my friends and family to stop buying gas on SUNDAYS AND MONDAYS!!

If Americans would join up--we could bring big oil to its knees.

If only Americans would stop bitchhhhhing and act!

Answer 3

Because we are slowly running out!

Answer 4

I agree that unregulated and poorly regulated speculation continues to affect the price of crude oil to a great degree.

I would add to the list the ever declining refinery capacity of the major oil companies. They continue to close existing refineries without building new ones. As a Saudi Arabian spokesman said, the world is drowning in a sea of crude oil but without adequate refinery capacity, it will never reach the gas pumps.

The oil companies have been allowed to create their own bottleneck whereby the supply of crude oil has little bearing on the supply of refined fuel available. And then the oil company executives appear before Congress AGAIN--smirking and trying to keep a straight face as they avoid the tough questions and keep spinning the tall tale of "supply and demand" being responsible for high prices.

This is a transparent effort to use "scare tactics" to open up offshore drilling. But most U.S. crude is exported with no contraints that would allow for relief at the pump for our citizens. The same would hold true for any new oil fields. Chasing the unholy dollar by whatever means and telling whatever lies to do it continues to be the plan of big oil.

Answer 5

I believe the speculators play a big role in the oil market. Hows this for another slap in the wallet. Did you know most of the oil we now get from Alaska is sold to Japan? I guess they get more for it from japan than they would if it was sold in america. How about the defense contract, that went to the french instead of an american firm like boeing? There is alot of bad going on in washington. Foreign countries hire american Lobbiest to lobby for them in washington. Congress bends to the will of these foreign lobby representatives instead of the will of the people. We need a complete overhaul of elected officials-they are too greedy and self serving. If Obama gets in your taxes will go up 54%. If even more democrats are elected were literally doomed. I am ashamed that I was once a democrat.

Answer 6

Supply & Demand? LMAO, just kidding of course!

Answer 7

Because we keep buying it.

Answer 8

because there are some very powerfull people in this world with very big interests and don't give a s..t abt the rest of us struggling to live

Answer 9

The one thing i know is that my country (South-Africa) sold all it's reserves of Fossil fuels when the new Government was implemented.We had Mines filled to the top with Crude oil.

Answer 10

Proof of oil speculators was in the pudding over the July 4th weekend. Prices rose above $145 a barrel over that weekend, then immediately started to dip to $136 a barrel by that Tuesday. Obviously the oil market is being manipulated because the fundamentals of supply and deman are off balance. Plenty of supply and normal demand.