Why has the price of petrol risen so much recently?

Question

Put as many points as you can please.

Also, what effects do you think this will have on other markets and industries?

Answer 1

I can't say that I am completely sure, but this is what I think. [im not from the states]

the real estate business collapsed, and banks had trouble

the fed printed a lot of money to lend it to banks

if there are more dollars, they cost less in terms of euros or any other currency that is not fixed to USD

greedy opec'ians now want 2 dollars for a glass of oil instead of 1 as before, because now there are more dollars altogether

this is as simplified as possible, but kinda macroeconomic, from monetarian point of view [M. Friedman]

about consequences

on other markets:

dont think that europe is really affected because dollar is ultra cheap for us atm anyways

for industries inside US it's wacky because production costs really increase so it creates inflation

i think it's all gonna level out in some years, unless someone decides that oil could be made cheaper by invading iran

Answer 2

Because life is not fair.

Answer 3

higher demand, we just have more people using gas (due to the fact that countries like china and india are getting wealthier and wealthier and more and more people from those countries are driving, when before they didn't have cars)

speculation (oil is a commedity and investores can buy and sale on the stock market)

less supply (some people think we have reach pike oil, that maxium amount of oil we will ever find and now oil is going to be harder and harder to find, also a number of countries have cut back on the amount of oil they are exporting)

taxes on gas (or petrol in your case)

the effects higher gas price will have on other markets is simple.  the cost of everything will go up.  just due to the fact that it cost more to ship things.

Answer 4

1) Increased demand from developing nations, with China and India being the largest contributors to this phenomenon.

2) Since the price of oil is denominated in $U.S. the declining value of the dollar has increased the price of oil.

3) Speculation in the commodities/futures market due to a number of factors including: loose monetary policy on part of the U.S. Fed and low returns on U.S. government debt and volatility in the stock market forcing investors into other markets.

4) Violence in the Middle East, of course.

Answer 5

401 speculators

Fighting like girls in Iraq and Afghanistan.

Trying to please loser countries like France.