2006-10-05 16:28:18 · 5 answers · asked by Midnight Ceres 2 in Social Science ➔ Economics
Mostly speculation. Almost everything you hear are doom stories about how the demand is going to increase (future larger demand) and how supplies are going to dwindle (future less supply) Blame the media, oil companies (olygopolies that are fine with it) and government. These things don't even HAVE to happen, as long as people believe they will.
Oil on the futures market tends to be higher al la speculation, and then effects the current price.
2006-10-05 18:23:34 · answer #1 · answered by JuanB 7 · 0⤊ 0⤋
GREED. When gas was at $3.00 a gallon, Exxon Mobil made $90 million per day. When the price was going up, Big Oil used Professional Excuse Makers. For instance, "Trouble in Iraq, Iran, Nigeria, North Korea, a pipe broke, a new hurricane, not enough trucks to carry the oil and the best one of all, "Worry". They got you over a barrel. Bush even gave Big Oil a $2 billion tax break. So now it's pay-back time. The price is coming down due to Election Day. But soon after, watch out for those Professional Excuse Makers, they'll be back.
2006-10-06 05:20:07 · answer #2 · answered by The professor 4 · 0⤊ 0⤋
It went up up up up up .....way up because of the demand from other fuel-hungry nations,and the damage to our fuel producing ports in the Gulf of Mexico due to hurricane Katrina.
But if you've been paying attention you'll notice that the price has dropped dramatically in the past month!
2006-10-05 23:32:49 · answer #3 · answered by Danny 5 · 1⤊ 0⤋
it went up because of the war, when the war started, there were concerns all over the world whether there would enough supply to meet their requirement, so many countries started piling up the stocks causing the price to go up
2006-10-06 04:08:51 · answer #4 · answered by ? 3 · 0⤊ 0⤋
So they could lower them before the elections... Dubya makes millions and looks like a superhero. Republicans do well in elections.
2006-10-05 23:36:02 · answer #5 · answered by The Man 5 · 0⤊ 1⤋