Explain how you think the price of oil is determined and the effects change in price has upon our economy locally and globally.
How complicated is this and why?
2006-12-15 13:31:52 · 8 answers · asked by Anonymous in Politics & Government ➔ Other - Politics & Government
Supply and demand. Increased demand or reduced supply causes the price to increase. Increased supply or reduced demand causes the price to decrease. OPEC (Organization of Petroleum Exporting Countries) does manipulate supply. You have probably heard of OPEC voting to increase or decrease output. Speculation is also a factor.
2006-12-15 14:33:24 · answer #1 · answered by STEVEN F 7 · 0⤊ 0⤋
The price of oil is determined by speculation, rumor, fear, greed, options traders and global manipulation. Very little to do with supply and demand. We have seen wicked price swings in the last four months, are we supposed to believe they are all due to market forces and supply and demand only? If that is what a person thinks they are either ignorant, clueless or believe the bullcrap the talking heads spout. Three dollar a gallon gasoline effects about ninety percent of Americans in a negative way. If it costs me sixty bucks a week just to go to work, that takes money away from other essentials, such as eating and paying the bills. It's not complicated, it's greed.
2006-12-15 13:43:58 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Oil prices are manipulated by people who wants to control the price of oil to their advantage. When the price of oil is high as it is now, then it affects everyone economically. The price of food goes up, the price of everyday products goes up, the price of just living goes up which creates a lot of bad feelings among people everywhere. If we can get rid of the manipulations and the lying of reasons for the rise in oil prices, then maybe things can get better. We needed another form of energy to harness such as solar, wind, even ethenal to combat the high prices of oil but the people voted against such alternatives. Should have voted yes on Prop. 87 and forced the oil companies to compete with other energy sources to keep the price of oil down. The voters have no one to blame but themselves..........
2006-12-15 13:44:40 · answer #3 · answered by Anonymous · 0⤊ 0⤋
well what i do know is that when demands for oil is high, the price of oil will go up. and when there are rumours of war, or when there is a sharp fall in the economy, the oil industries will react strongly to such events and prices will increase as well.
2006-12-15 13:37:03 · answer #4 · answered by lpjz290 2 · 0⤊ 0⤋
i really dont know .. but i think the govt controls the prices more than anything and makes alot of money from taxing it on the way in and at the pump ... and i think they are in with the producers on it and control production to keep their cut high ... and i think they feel the market out and keep the price as high as they can without scaring people into conservation mode .. but i may b totally wrong ...
2006-12-15 13:37:05 · answer #5 · answered by Anonymous · 1⤊ 0⤋
A bunch of greedy folks decide when to increase or decrease production. There by controlling the price.
2006-12-15 13:37:19 · answer #6 · answered by Anonymous · 0⤊ 1⤋
Law of supply & demand. Demand increases, supply doesn't, price goes up. Econ 101.
2006-12-15 14:23:51 · answer #7 · answered by yupchagee 7 · 1⤊ 0⤋
the oil and gas prices are high becuase of the war in iraq which is one o the places we import are oil and gas
2006-12-15 13:36:34 · answer #8 · answered by unit_804 2 · 0⤊ 1⤋