Does anybody believe this hype about shortage?
How does the price of oil REALLY drive up ?
2007-02-05 05:05:34 · 7 answers · asked by Charles R 1 in Business & Finance ➔ Investing
oil is like stocks, there has to be a willing seller and a willing buyer. supply and demand dictates the price..If supplies are tight, the price will rise. Remember one thing, There can be a lot of oil but it may have a transportation problem, which will jack up the price short term, political instabilty can effect prices as well, in other words, anticipation of supply problems, not the supply in reality.
2007-02-05 06:30:10 · answer #1 · answered by bob shark 7 · 0⤊ 0⤋
Simple economics. A seller deals with the highest bidder.
UK fuel prices have little to do with the price of a barrel of crude. Our beloved chancellor gets the biggest cut of all.
It has always suprised me that the Saudis have never objected to the fact that HM Government gets more from an oil well than the producer does!
2007-02-06 13:05:50 · answer #2 · answered by BRIAN S 3 · 0⤊ 0⤋
Because the OPEC countries slow down pumpimg,somebody blows up a pipeline for instance & demand remains the same thus driving up the price of oil.
2007-02-07 11:39:53 · answer #3 · answered by oldbeangbr 1 · 0⤊ 0⤋
Oil prices are high not only because of shortage.
2007-02-09 03:36:10 · answer #4 · answered by sindhukannankattil 2 · 0⤊ 0⤋
Oil is a natural resource, we are using 86mln. barrels of it per day and the Americans are the biggest offenders. Did you think it was inexhaustible? Are you really so naive, or just stupid?
2007-02-07 11:20:32 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Exxon made a record profit last year of $39 Billion (just profits). Something is wrong here.
2007-02-05 13:13:34 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Too much Fuel Tax. Pure and simple.
2007-02-05 13:09:37 · answer #7 · answered by Anonymous · 0⤊ 0⤋