2006-07-23 00:28:18 · 4 answers · asked by luizmui 1 in Business & Finance ➔ Other - Business & Finance
The majority of crude oil reserves in the world are located in the Middle East. A war in that region will usually cause supply distruptions (damage to pipelines, wells, etc.). Even if no crude wells or pipelines are damaged, price of oil will rise just on the possibility that that could happen.
Anytime a war breaks out in a region where oil is produced will cause prices to rise. Nigeria is the only place to get light sweet crude, and with the troubles they're having over there, crude prices have risen. If trouble broke out in Venezuela, prices would rise cause Venezuela is the #5 export of oil in the world.
In a nutshell, if it can cause supply distruptions or affect supply lines, crude prices will rise.
2006-07-23 00:35:49 · answer #1 · answered by 4XTrader 5 · 0⤊ 0⤋
Actually this question is easy to answer. Petrol mostly comes from Middle East. When a war breaks out, people are worried that the oil factories or whatever you call them get bombed and then ur petrol are all gone. So the people selling petrol are worried that there will be no more oil to sell and thus raise the price so that they can earn enough money shd there be a shortage of petrol.
2006-07-23 07:38:58 · answer #2 · answered by Anonymous · 0⤊ 0⤋
I don't know if you have noticed this, but whenever ANYTHING to do with oil has a problem of ANY kind, the price of petrol goes up. If a ship carrying crude oil spills any or looses the load, the price goes up. If there is a storm where the supply line is cut down or off, the price goes up. If there is a slight argument all the way to a war in anything that is considered a sandy area not in the US, the price goes up. This isn't about the war, this is about the corporations and all those that are involved, getting rich on our dime using stupid, lame excuses to justify taking more of our money than they are currently getting. In short, greed. Good question!!
2006-07-23 07:38:33 · answer #3 · answered by roritr2005 6 · 0⤊ 0⤋
The oil price is determed by supply and demand. When there is trouble in the ME the oil traders fear there might be less oil supplied, so they are willing to pay more to make sure they get some. Unfortunately for us, they are buying indirectly for us, so our fuel prices also go up.
2006-07-23 07:33:07 · answer #4 · answered by Gungnir 5 · 0⤊ 0⤋