i need to know why oil prices fluctuate so dramatically, and why is it that when there is a war taking place, oil prices rise, whats the reason for that.. thank yuuu...
Xx alisha xX
2007-01-14 08:34:59 · 2 answers · asked by ..::aLi$hA::.. 2 in Social Science ➔ Economics
well because of the war alot of the governments money is spent so they need to rise things like oil prices to get more money for our government. Also because oil is scarce. it is almost all gone and because of war thousands of gas gysers are now ruined. Like in Kuwait. That war destroyed many gas gysers. If we had those gysers, our gas would last for several more years
2007-01-14 08:43:03 · answer #1 · answered by andrew 3 · 0⤊ 0⤋
Its mostly a matter of global supplies and demand. Demand worldwide is growing very fast because of the fact that other industrialized countries are growing and are now into things like automobiles that use oil. Couple that with demands in the winter for home heating,,and market forces drive prices up because supplies dont keep up with demand. Price rises are for the purpose of rationing supplies.
2007-01-14 17:06:17 · answer #2 · answered by Rick 3 · 0⤊ 0⤋