Why is gas so high?

Question

And going up and up?

Answer 1

The biggest reason is the falling value of the dollar. The global market is being flooded with U.S. currency, reducing its relative strength. Where the dollar used to be stable and strong, it has become weak when measured against other markets and their currency (Europe's Euro, even Canada). During the last year the U.S. dollar has fallen 14 percent against the Euro, nine percent against the Chinese Yuan, and 15 percent against the Japanese Yen. In other words, it takes more dollars to buy the same goods on the world market.

Market speculation is another main reason. With a weakened real estate market and stock market, investors have been profiting heavily in commodities, including oil futures. This drives the price high despite ample supply of product. This has created a speculative "bubble" that will eventually burst, causing prices to fall. The bubble will burst when the traditional markets recover, though the time frame is anybody's guess.

Various sources claim short supply of oil, but that is unlikely. OPEC nations have actively REDUCED the amount of oil pumped because there is sufficient supply and current demands are met. In April, U.S. stockpiles grew nearly 12m barrels. Iran is now storing crude in old tanker ships floating in the Persian Gulf because they have run out of space in conventional storage tanks. Most estimates place oil reserves somewhere between a 50-100 year supply, even at current demand.

The real reasons for high gas (in my opinion) are not as s**y as others, but they are supported by observation of the market. If you want to look for yourself, read up on market speculation and its examples (e.g. dot-com bubble, real estate bubble). If you're not that interested, just remember this as your quick answer: weak dollar, poor market.

Answer 2

this is mostly because of speculation and the rise in demand for it,the more drivers enter the roads the more gas we use up and they can only produce it so fast,but the majority of the reason right now for it is the demand for it,summer time brings a lot of travelers and people vacationing,so the demand for it will be much higher this summer than in the past,and we have about a half a million new drivers on the road this year than in the past,so there again there's going to be more of a demand on it,good luck.

Answer 3

Watch the news.

Answer 4

Initially the prices of oil started going up because of

(1) increased summer demand

(2) weak economy / weak dollar

But most of recent oil price rise (from about $100 - $140) are all due to WALL STREET SPECULATORS (wall street greed).

Good Luck...

Answer 5

watch the news. When I first said speculators were a large part of the problem everyone said I was crazy. I get to laugh now

Answer 6

because we cant find oil anywhere, therefore the rareness of oil and petroleums high prices to make oil are making gas so expensive.