Why oil price increase continual?

Question

Why oil price increase continual?

Answer 1

First off there is no shortage.  Our oil usage has gone down.  The problem is the money hungry oil companies plus oil futures speculators are driving up the price because they think the party will be over if democrats are elected into office.

Answer 2

Because the people that control oil control politics.

The USA is coming up on an election. Petroleum prices have risen sharply before every recent U.S. President gets elected and calmed down when the winner gets seated comfortably and establishes policy. It is a misnomer that the Democrats don't have a say - they are as rich and internationally diversified as the Republicans making oil money directly today.

There is no shortage. Just people short on understanding why control of oil equals control of world politics.

Answer 3

Its an exhaustable and non-renewable energy, which is used by millions of people around the world to run their transportation, each and every second. Now a days each family all over the world is having atleast 3-4 cars in their home. Everyone is driving his/her own car, with a/c. Imagine, people are consuming more petrol than food each second.

Maybe that is the reason in increase of oil price continuously.

Answer 4

Just imagine that every human being in the world, all Asians, all Africans etc. would own an SUV and eat food that is transported by trucks for thousands of miles. What do you think the price of gas would be? Let alone the pollution it's going to create!

Answer 5

Four Letters OPEC.  I work in the Gulf of Mexico, we have plenty of oil and plenty in reserve.  We have the only refineries.  We inport oil to save ours, but opec, being the money hungry people they are say Ok, your using to much so the price goes up, then they say, you've cut down, so we're raising the price.  I say sell them wheat and corn for the same price as a barrel of oil.  You'll see the prices drop, we have the wheat and corn, they can't grow crapola in sand, imagine that, to do them what they are doing to us.  I'd put an all stop on them, their oil is of no use to them if they can't refine it.  I work out here and I'll be the first to say, it's B.S.

Answer 6

The answer to your question ranges drastically depending on who your asking, but I will try to keep it simple and offer different answers to the same concepts.

Supply and demand.

1.The figures of the worlds top suppliers of crude oil might be inflated or running out faster than expected-> producers cut back on oil production.

2. These oil producing countries are heavily controlling their production in order to raise prices. There is no incentive to drill for more(why do more work ?) if the demand is great enough to sustain the current high prices.

3. HUGE demand from emerging  middle class in China and India. (their middle class is in the hundreds of millions)

4. The consumption of oil has NOT gone down in the US compared to UK and parts or Europe since the 80s.

On top of that, there hasn't been any new construction of refineries in the US for the past 30 years. Therefore, even if we suddenly have huge influx of crude imports at cheap prices (or tap into the Strategic reserves), the refineries will not be able to keep up with the demand, therefore will not do much to alleviate the current gas prices.

Politics

1. The continuing conflict b/w west and Iran. Iran's strategic location in the Straight allows them to have a huge influence on the investors and market fluctuation.

2. The refusal to explore domestic sources in the US.

Alaska, shale conversion, and off shore drilling..

3. Failure of alternative fuel to makes us less oil dependent. Ex: Ethonol from corn has contributed enormously to the rise in global food prices as well as being a major pollutant in the growing, processing and delivering phases. The environmentalists are not telling the whole story.

To be continued, at work

Answer 7

this is due to the scarcity of oil sources as time goes by making them not sustain the growing need of people for oil that's why prices of oil go up

Answer 8

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/...