Lebanon and Israel are not the source of oil why their conflict affects the oil price?
2006-07-25 13:04:49 · 11 answers · asked by Anonymous in Politics & Government ➔ Other - Politics & Government
The tides seem to be effecting the price of gas. Why shouldn't a war?
2006-07-25 13:07:42 · answer #1 · answered by Professor Chaos386 4 · 0⤊ 0⤋
There's a lot of uncertainty, especially since by most counts, this is just the beginning. There's always uncertainty at the beginning of hostilities, but these hostilities are in the middle east, which is a very oil-rich region. Neither Israel or Lebanon have much in the way of oil, but it's no big secret that Hezbollah and Hamas (the people that Israel are actually fighting against--not Lebanon), are being supported by Syria and Iran, and to a lesser extent, other regional Arab-run nations which ARE wealthy in oil. So if things really turn to pot, a huge percentage of the world's oil supply is suddenly right in the middle of it.
We saw in the Gulf War that Saddam set fire to his own oil pipelines to deny the resource to the invading force. What's to say these guys won't do the same thing? Also, if the normal means of getting the oil out of the region to its refinery locations is stopped (interrupted supply lines), than all the oil can't go anywhere, which cuts the supply almost as drastically as if the oil were destroyed.
In economics, you learn that it's a balance of supply and demand. If there's a big supply, folks can get it anywhere, so there is less demand and they aren't willing to pay too much for it. If there's a small supply but still the same number of people wanting it the demand is increased, and they're willing to pay more to get it.
2006-07-25 13:17:07 · answer #2 · answered by Woz 4 · 0⤊ 0⤋
War anywhere in the Middle East can effect the world's oil supply. Supply goes down, price goes up. Just the appearance of a possible effect on the world's oil supply will cause speculators to drive the price up.
2006-07-25 13:10:17 · answer #3 · answered by Nuke Lefties 4 · 0⤊ 0⤋
Instability in world affairs makes investors nervous, therefor raising interest rates.
That plus the fact that airplanes and tanks burn petroleum, so Israel is probably buying more.
Actually, I have no idea. I was just pulling answers out of my !
2006-07-25 13:12:00 · answer #4 · answered by Randy G 7 · 0⤊ 0⤋
Oil companies need an excuse, any excuse, to raise their prices.
2006-07-25 13:07:56 · answer #5 · answered by imagineworldwide 4 · 0⤊ 0⤋
Any excuss for the dune coons and the big oil biz to rape Americans...thats the simple answer
2006-07-25 13:09:32 · answer #6 · answered by tripledigit67 3 · 0⤊ 0⤋
Because it gives the oil companies an excuse to do so...
2006-07-25 13:08:20 · answer #7 · answered by emsa5804 2 · 0⤊ 0⤋
Supply demand effect
2006-07-25 13:29:30 · answer #8 · answered by ramg 2 · 0⤊ 0⤋
Everything effects the oil price...why wouldn't this?!?!?!
2006-07-25 13:08:08 · answer #9 · answered by Nicole 4 · 0⤊ 0⤋
It's just an excuse for all the gas stations to rape us for money!!
2006-07-25 13:08:09 · answer #10 · answered by Anonymous · 0⤊ 0⤋