What is really causing the price of oil to increase?

We are told that it's because China and India are using more, but their industries are only replacing the industries that have been transplanted from America and Europe etc.


Is it an intergovernmental plot whereby we reduce oil consumption and thereby reduce greenhouse gases.


Does someone know something we don't or are the various governments falling for the global warming myth?What is really causing the price of oil to increase?
Fat cats, they're getting fatter.What is really causing the price of oil to increase?
I believe there are several reasons for the increase in the price of oil; the largest which is greed. Every developing nation depends on oil, and its products. I believe that the decrease of the demand for oil will result in the decrease of the price. To decrease the demand for the products that require oil consumption will be realized in a decrease of the price for oil. Decreasing the demand will only result from a change in the structuring lifestyle. In this nation, the development in technology has resulted in the increase of familial isolation. Family concentration is a thing of the past. So, the accuracy of numbers is in strong corelation when used to illustrate how the development of the autonomy has resulted in the demand for fossil fuel products.
Prices go up and down because of perceived future excesses or shortages. In other words, if a trader thinks that there is going to be a shortage soon, he will buy now in the hope that the price will go up and he will be able get a bargain. If other trader think the same way, then the price of crude oil keeps on rising.





By the way, the cost of fuel (petrol, diesel, heating oil, etc.) does not depend directly on the production of oil in the world, but more on the availability from refineries. Prices here are controlled in the same way by the laws of supply and demand and as people use less fuel (summer, rising prices) then either the prices at the pumps fall, or the petrol companies make more profit.





The way that China and India influence the price at the moment is in the way that traders think. Other factors influence this as well - conflict in the middle east, Iran vs US, problems in Nigeria, weather and a whole host of other factors.
Many countries have struggled to increase supply as much as they like. US, UK, Russia and even many Arab countries have found it difficult to meet the rising demand. Their is still plentiful oil supplies (although there is a significant debate about the true extent). However, as more oil is extracted, it becomes increasingly expensive and difficult to extract oil. Certainly now that oil is over $140 a barrel it will encourage oil exploration in less accessible areas such as Siberia and the Antarctic. But, even it if is possible to increase supply from these areas, it will take time for these extra supplies to come on track.
The main cause of the increase is speculation by futures traders. They make a contract to buy oil at a certain price in say three month time with the expectation that when the oil is delivered prices will have increased and they will make a profit. As prices increase they feel more comfortable bidding high for the contracts but this in turn pushes up their eventual sale price so unfortunately the whole thing has been caught in a spiral of positive feedback.
What is all friggin oil circulated in? US dollars


Is the currency weak now? Yes compared to a few years ago


What backs the currency? The US economy


Is the US economy obviously in sh*t? Yes


Why is it struggling? Irresponsible government lending for morgages that people can't afford to pay back


What happens when a currency becomes more worthless? You need more of it to buy a certain product.


What type of investment makes sense in a troubled economy or at least an economy where there's loads of headlines about economic trouble? Hedging (Commodities. Gold/Silver most commonly, but also crude.)


Does this drive up prices? Yes.
The price of oil soared from $98.00 to $147.00 in just months. However the price of oil has been dropped by ten dollars. During this crisis there were some people purchased barrels of oil in order to make a profit. They would sell their oil when the oil prices increased. America is supposed to develop alternative forms of energy. Less talk and more action.
there are many reasons.


1: Oil reserves are depleting and new reserves are become rarer.


2: Opec (the organisation that controls most of the worlds oil supply) is rising its prices for crude oil because of reason 1.


Ps: The governments have taken no such steps to combat climate change, sadly.
My husband told me that when Americans use less gas (as we have been doing so lately) that the government produces less oil so that prices stay the same instead of decreasing because of decreased demand. There are other global/political reasons for the increases.
Something has to cover the cost of the neverending war.





They'll hike it up and up and up till bursting point , then reduce it to win voters.





It's all spin.
The price is being set by the big oil companies.


It's illegal and proof exists but they seem to be getting away with it.
The oil price rise is cause by speculation. It one of the side effects of ';open market';....
Me. Sorry.
It's going into manufacture of BRYLCREME


for the Free Masons
increased demand for oil globaly
James Brown is growing his hair.
Good question...
two words for ya love. Gordon.Brown
I've got a strange feeling that George 'Dubya' Bush is one factor