It's an outrage that oil prices are also based on politics, hearsay and every little conflict that arises through out the world. The latest reason to jack prices up now, is the bombing that Israel is doing to Lebanon. An oil traders logic today was that they anticipate a possible shortage due to this conflict. Hooray!! Lets just screw the american consumer today rather than wait for what might never actually happen! God forbid big oil as a business, ever take a loss on anything. Next week they'll use what ever the fed. chairman says about the economy to stick it to us.
2006-07-13 12:53:44 · 7 answers · asked by Jon 2 in Politics & Government ➔ Other - Politics & Government
Its not the rule of supply and demand, its the LAW of supply and demand. People are buying oil because they want to be sure they have some. Everyone wants to make money. If you sell your house or your car, who do you sell it to? The one that is willing to pay the most for it. Armies use a lot of oil, and oil wells and pipelines get blown up.
But, have you heard how President Bush and the GOP are going to open up a large part of the gulf of mexico to new drilling? That will increase supply and keep prices down.
2006-07-13 13:02:56 · answer #1 · answered by kimmyisahotbabe 5 · 1⤊ 0⤋
well thats what is causing this situation, there is a limited supply of oil that can be refined at any given time, china joined the world as a factory nation and they are using up a lot of oil so everyone has to pay more. no they dont want to take a loss. they are making money hand over fist, why dont you apply to start a business making alcohol fuel, then you can get rich too. as that is surely the fuel of the near future, and hydrogen will be the fuel of the farther down the road future.
2006-07-13 12:58:07 · answer #2 · answered by Anonymous · 0⤊ 0⤋
The sooner people get educated about money the better
Money is an accounting practice that can be changed at the whim of a pen, think do you believe when the first person found a piece of Gold it was stamped Valuable, no. We the people do not demand better because we are afraid of loosing our crumbs, it's all about controlling the population and using them as slaves to build their vision of the world
2006-07-13 13:01:25 · answer #3 · answered by man of ape 6 · 0⤊ 0⤋
don't you love the Republican disinformation...
kimmyisahotbabe: it sounds like it will be in just in a few particular areas, which will only add a few extra drilling sites.. in other worlds... under ideal circumstances, it may drop gas by a penny or so...
but to answer the question... supply and demand seem to have about as much to do with price increases as the cycles of the moon... which is very little... the prices seem to be more based on finding any excuse they can to jack up the price...
2006-07-13 13:29:06 · answer #4 · answered by Anonymous · 0⤊ 0⤋
This is a rant, not a true question. The laws of supply & demand are still in place. I believe the Oil industry is somewhat of an oligopoly--so "special economics" apply.
2006-07-13 12:59:06 · answer #5 · answered by kobacker59 6 · 0⤊ 0⤋
Politics should have always been included in Economics equations. But you know what the greatest Economist, Milton Keynes, said: "Economics is a dismal science."
2006-07-13 12:59:29 · answer #6 · answered by browneyedgirl 6 · 0⤊ 0⤋
well see the buisness makes money by milking the market: logicaly they can make more money by raising prices-and they can raise their prices so long as everybody else does too. the 'worried about the shortage' anouncements are just a silent agreement
2006-07-13 12:58:51 · answer #7 · answered by ben s 3 · 0⤊ 0⤋