Can someone tell me why oil prices rise if someone sneezes in Iraq?

Question

British Naval personnel taken prisoner by Iranian forces. This is of course a serious event, and one would hope that the outcome is favourable with no casualities, but why, in events even far less serious than this, does the 'oil industry' proclaim that 'oil prices must rise'. The producers don't increase the prices, but the oil companies do, and it's the consumer that suffers giving HUGE profits to these companies.

Answer 1

Yes fair question, stand by for a huge increase in the very near future, this latest event should up the price quite a lot!

Answer 2

Look up oil futures trading on the interent. Oil prices are a result of brokers buying and selling (like the share market) and as such their confidence in the reliability of oil supplies in the future is what adjusts prices. The oil companies obviously charge as much as they can for oil, but there isn't a global cabal of oil employed newspaper readers with calculators who add 10% for each shot fired in Basra.

Answer 3

Extortion by the Companies, and what gets me is this:
A lot of things are made from oil in the making of gasoline and shouldn't the by-products produced from this process also bring the price down? So actually, we are getting hosed all around...

Answer 4

under the Clinton administration oil costs saved down because of fact of his relationship with oil generating countries that weren't area of OPEC. while OPEC decrease oil production. different countries like Venezuela, Nigeria or maybe Saudi Arabia( an opec member) better production. So OPEC somewhat grew to become into at a downside and the decrease grew to become into short lived. under the Bush administration the kinfolk with the non opec countries has soured he's to no longer properly enjoyed globally. He defied the United countries and started the Irag war. He gave a sparkling verify to the Oil and defense force manufactures interior the U. S.. Why? because of fact he and others in his adminstration have economic hobbies in those industries. 2 industries that made little or no money while Clinton grew to become into in place of work. 2nd is the economic gadget in China. they have thrown away their bicycles and now could have adequate money automobiles. i think of China will pay much less then 0.5 of what we pay for a gallon of gasoline. in the event that they paid what we pay they might flow decrease back to the bicycles. the present administration is immediately responsible on your severe oil costs its that easy. the yankee public can do plenty to stress those costs down yet are to ignorant to attempt. in case you stress your motor vehicle at fifty 5 mph you will save a minimum of 15% to a optimal of 23% gasoline in line with gallon. If we do it natonwide purely think of approximately how much less the oil companies will sell. costs will come down. furnish and insist. extra furnish and much less call for. And a plenty purifier environment. however the yankee using public is to ignorant to do it.

Answer 5

dukeofmud sounds right. I would add that if prices stayed stable the traders wouldn't be able to make such big profits on the back of rises & falls, so it's probably self-perpetuating.

Answer 6

Oil prices are an indirect tax on american consumers...
Iraq means nothing... Iran is the key...

Answer 7

We did not need Iraq's oil the world has around plenty of oil but Saddam did not wanted to do business with American oil companies and they got bush to get him out but do you know 40 plane loads of American service man are NOT coming back?? they are not going to see their wife's children mothers fathers brothers sisters or friends cause THEY ARE DEAD!!

Answer 8

Burn Baby Burn.
signed,
Rap Brown

Answer 9

Because they sneeze 50 pound notes...which are obviously wet...so they get chucked in the bin..so have to be replaced...by us

Answer 10

You are confusing oil and petrol (Which is a by-product of oil)