Are oil prices up because oil companies want to make a profit before energy efficient cars take over?

Answer 1

Oil markets these days operates on fear of prices tipping up. The situation in the middle east and all the fighting that is going on now may result in an even higher prices and threaten the economy... Today's oil prices may soon be cheap compared to what they are going to reach... It may go up to $100 BBL or more!
I read somewhere that during 4th of July holiday, a record 40.7 million Americans took lots of trips of more than 50 miles, up 1.2 percent from a year earlier. The gasoline consumption got to around 10 million barrels daily, a monthly record. Meanwhile, the economy seems strong.
The problems of Israel in the middle east immediately sent crude to $78 a barrel......
The economic effect would be threatening. It goes like this (approx.) every $10 a barrel, gasoline prices rise by about 25 cents a gallon.
I also agree on one of the answers above... Its supply and demand... Gap between demand and productive capacity is so small!!! Oil demand is inelastic, as fuel for consumers is essential. Also you must account for the mistmach between needed and desirable oil and what they want or have.
hence : heavy vs light crude oil!!
The scarcity and shortage of light crude is putting high pressure on oil prices.
So ask yourself....would prices go even higher? hmmmm, yes, probably have to rise more than $78 a barrel.
Worst case scenario if oil prices plunge up when other when economic growth goes weaker!
Sorry I got carried away..... I hope I made sense.. I have been reading a lot about it LOL

Answer 2

The transportation industry only consumes 10% of the energy used in the US. In 2000 the energy shortfall was 20% according to Bush. By 2025 the shortfall will be 40% again according to Bush. Do you think efficient cars have any hope in changing the amount of money they make.

As China & India get mor prosperous they will take up any "slack" generated by fuel efficient vechicles.

Answer 3

Thats EZ to ans.
NOPE!
Cuz there aren't gonna be any energy efficient cars that'll stay ahead of these launder wrapped dick heads id the oil republic or in office along with all the bushes!!

Answer 4

Dude, the majority of our oil comes from canada and mexico...... a good chunk comes from Saudi, but don't be an idiot and say that the war is about oil. Ever think about all the oppressed people that were living under Saddam's regime?

Answer 5

No. It's because of the war in the middle east, and the shortage of supply, partially due to the inability of oil companies to drill for oil in the U.S., where there is plenty, but drilling is impossible because of unnecessary environmental protection laws.

Answer 6

If you think they're waiting for fuel efficient cars you're the fool.
You should check out http://byronwine.com the oil boys have gotten rid of more inventors than you can count.

Answer 7

My dad and his father own a oil company what it is is the stock market price for a barrel of crude oil is all

Answer 8

supply and demand. if investors feel the supply of oil may be interrupted (by terrorism, natural disaster, etc) the price goes up, as the prices rise, consumers choose to use less gas, therefore reducing the number of gallons sold, and as a result, allowing supply to stabilize. then prices go down. as our consumption of gasoline is reduced, the price will stabilize. also when the middle east stabilizes, and less threats exist that may interrupt supply, prices will also drop then as well.

Answer 9

No.
The companies who supply the oil can control the prices. Then, there is only limited refining capability. They are making money but it is not so simple.

Answer 10

That's partially why, but also because the opec countries have agreed to decrease production for a while until the Iraq thing gets settled better.