Howmuchof fuel prices is based on actual costs,oilreserves replacement costs,& geopolitical & terrorism costs?

Question

Please forgive the word compression in the Question. It was necessitated by Yahoo's inadequate character limits.

This is an important question which our free-speech, free-press journalists should be insistently seeking answers to by asking and demanding that the Oil Companies, the Executive Branch and the elected representatives in Congress answer until we all can fully understand the real economics of our reliance on crude oils , our dependence on all fossil fuels and the move to fossil fuel replacements still made of carbon.

Answer 1

Please. The constant sabotage in Iraq has decreased world output by the amount that supply is short. After that the prices were bid up in auction style as future buyers feared further trouble and expected more rises. Add some short term effects from Katrina.
Pray that Iran is not attacked because I don't think the economies will withstand the consequences.
Sorry but no bad guy businessmen have suddenly gained the power to do this.

Answer 2

I still think that all of us are being gouged by the oil companies. For example, how does the price rise from $2.76 per gallon, to $2.99 per gallon in a matter of minutes. The fuel that is already in the tanks does not get more expensive while sitting there. The big oil companies keep reporting huge profits, and former CEO's get enormous severances packages.
We are all being lied to!
At the most.....they could probably charge about $1.50 per gallon and still make a profit.
But as the U.S. Leaders are oil men, a blind eye is being turned and all of us suffer.
I know this is a world wide issue right now. But someone, somewhere should just say "THAT'S ENOUGH, we as a people should put an end to this madness by cutting back on our usage considerably!." I know, I have.

Answer 3

None. Oil prices behave the way they do because investment in oil production and refining is irreversible, while oil itself (and products of its refining) is storable (i.e., not perishable). Standard economic theory predicts that under these conditions there will be volatile prices, asymmetric adjustment of production to price changes and long inventory cycles. For more information (including a formal model of aluminum market), see:

Fridrik M. Baldursson, "Modelling the price of industrial commodities," Economic Modelling, Volume 16, Issue 3, 3 August 1999, Pages 331-353

Answer 4

It's all a rip off, the war was started over oil believe it or not, did they ever find any weapoms of mass destructions over there, no why cause china and korea got them but we ain't going to war withthem now are we. stupid fu*king president. the reason we went to war is cause bush sr. wanted to run an oil pipe from irac to america, the deal went bad they tried to kill him but failed "damn" that's when desert storm started, clinton got in office and cleared everything up "i miss president clinton" everything is cool. then dumb fu*k bush jr. cheated his way in office and allowed 9/11 to happen they knew it was going to happen. that was his excuse to go to war but he stop looking for the man behind 9/11 and went after the man who tried to kill his daddy and he tried to take the land and force the oil over here to america, why cause his daddy own's alot of oil wells in texas, why is gas high who sets the prices the goverment, who's benefiting from this the bush's oil business, oil reserve replacement cost, why didn't none of our oil wells get blown up, but why do they care cause the goverment wants the oil over there, why you think when ever we dispute with irac the blow the oil wells up, so we won't get them, geopolitical, no this is bush-a-litical. terrorism cost, look who's the blame, when clinton was in office we didn't have any terrorist thearts, but as soon as bush gets in office the blow up the twin towers, y'all people didn't catch that i guess not cause he got voted for a second term so thanks abd a great big fu*k you to whom ever voted for bush.

Answer 5

corner the market, join forces and rip people off.
look at their profits, the only ones making any money today.
our president owns oil companies?
things that make you go hmmmmm.

Answer 6

in money terms, fuel prices are based on people's level of trust-worship on money. in value terms, fuel prices are based on a destroyed planet and dead bodies. i do not know how many. a lot.


change your minds

Answer 7

i don't know what the other cost are but the gas station only makes about 2cents per gal they sell