Who here can explain what set the oil prices in the US?

Question

I'm just curious to see who really know what they are talking about.

Answer 1

Yes, supply and demand. The environmentalists have stopped people from drilling more, so that cuts the supply, driving up the price. OPEC also drives up the price because they have a pretty good monopoly, even if it is not a complete monopoly, they can get away with it because we are dependant on their oil...because we can't drill more places.

Answer 2

First and foremost, as an environmentalist, I would like to say that if people did not buy the biggest set of wheels and motor on the lot, then maybe you would not be feeling it as badly as you are. The car companies have the technology to make cars more efficient, but why do so when some one is willing to buy Grave Digger and Bigfoot. Secondly, on to the prices. As can be seen buy the rise in gas prices before the weekend and a holiday, supply and demand does play a role. However, so does a large supplier closing down a pipeline in the middle of an oil crisis. And, lastly, it is also the government and the companies, as can be seen by the continuous rise in prices while demand remains stable (partly do to inflation, partly do to factors in the oil industry that our government could care less about, and partly do to reasons that I don't think people will ever know about). LITTLE HAVING TO DO WITH THE ENVIRONMENTALISTS!!!!!!!!!!

Answer 3

The government actually set them but they will never let it be known. They were looking for an excuse to raise oil prices so they blame it on hurricanes. They make more money this way by increasing prices and taxes.The also know that the average family who has a big vehicle or suv that loves the gas will go out and buy smaller cars with better gas mileage which means more money from taxes on cars, More cars registered ,and more sales for the auto makers which amounts to big profits.This is the same reason that a small car that cost around $10,000 four or five years ago is going to cost between $15 and $20,000 today yet the price of the larger vehicles are staying about the same.The auto makers make more money,the gas and oil companies get richer and the states get more money from the registrations.

It would really put a kink in their plans if we all diverted back to the horse and buggy days.

Answer 4

Oil is a commodity traded on several markets around the world. The three largest factors affecting the price are supply, demand and fear. The supply of fear seems ever available. Traders are presently buying oil contracts the way Floridians by bottled water and toilet paper before a hurricane. Traders are not consumers. Traders are more like Manhattan Realtors. They have no interest in lower prices. Consumers don't buy oil contracts. Or oil. Consumers buy gasoiline filtered through alligator wallets in $3,000 suits. Presidents have simuhide wallets in $1100 suits. They just look good enough to affect the oil price. You can't affect the price either. You can affect the relative price by making enough money to afford those $3000 suits. Any price multiplied by "I make too much to care" is perfectly fair.

Answer 5

Thats it mathew. Blame it on the liberals for crying out loud. They do not set the oil prices. I belive oil prices are based ENTIRELY on speculation and emotion not supply and demand as they want us to believe.

I am not saying an endless supply exists but it can be manipulated based on refinery capacities and OPEC.

For some of you that do not know, Saudi Arabia does not sell oil on the spot market. Therefore, if a big oil company buys Saudi oil, they are buying it at a contracted price. They then charge as much for the refined product as a retailer who has purchased theirs on the spot market. This is why Big Oil has made so much profit.

Remember, we are the only contry in the world that not only uses oil but we waste it too.

Answer 6

The market determines oil prices.

Answer 7

It is supply and demand. The environmentalist have cut the supply with restrictions on drilling and production capacity. They blame big oil companies but it is really the liberals.

Answer 8

It's supply and demand, just like everything else.

Answer 9

Bush...

or one of his oil magnate appointees.

Megabucks! Yipee!