2007-03-26 08:12:56 · 8 answers · asked by Farhan L 2 in News & Events ➔ Current Events
Commodity traders are responsible for oil prices by bidding on oil futures contracts. There are many factors they look at when developing the bids that create oil prices:
1) Current supply in terms of output, especially the production quota set by OPEC.
2) Oil reserves, including what is available in U.S. refineries and what is stored at the Strategic Petroleum Reserves.
3) Oil demand, particularly from the U.S. (as estimated by the Energy Information Agency . During the summer, forecasts for travel from AAA are used to determine potential gasoline use. During the winter, weather forecasts are used to determine potential home heating oil use.
Of course, potential world crises in oil-producing countries can also dramatically increase oil prices. This happened in July 2006 with the Israel-Lebanon war that raised fears of a potential threat of war with Iran.
2007-03-26 08:38:54 · answer #1 · answered by Rick 3 · 0⤊ 0⤋
The big driver in the increase in oil prices has been China. China is importing more and more oil and as a result the increased demand is raising prices.
2007-03-26 10:23:37 · answer #2 · answered by MikeGolf 7 · 0⤊ 0⤋
What befell while he controlled to get Congress to bypass the CFPAct? for 3 years now, the Republicans have refused to approve a head for it, in basic terms as they have refused to substantiate a head for the ATF for 6 years! you may not ***** approximately issues not being enforced once you refuse to establish the mechanism to do it. in basic terms elevating the margin standards on futures could be sufficient to close a minimum of 0.5 of it down. it rather is at the instant at 3%. strengthen it to 20-5%. And including a 5 cent transaction value might end the microtrading. it would stabilize not in basic terms the marketplace however the economic device. think of the government is going to bypass after the great moneyed people?
2016-10-19 23:40:19 · answer #3 · answered by fanelle 4 · 0⤊ 0⤋
One of the new excuses is the refineries are breaking down and need to shut for rebuilding. This drove the barrell price up.
2007-03-26 08:36:05 · answer #4 · answered by Anonymous · 0⤊ 1⤋
The weather is nice & people are driving more, the refineries are having trouble meeting demand.
2007-03-26 13:31:20 · answer #5 · answered by James B 2 · 0⤊ 1⤋
greed and big profits for the oil companies.
2007-03-30 07:48:06 · answer #6 · answered by steve f 3 · 0⤊ 0⤋
The elections are over.
2007-03-26 18:24:47 · answer #7 · answered by s. k 3 · 0⤊ 1⤋
it is amatter of supply and demand.
2007-03-26 13:50:46 · answer #8 · answered by Anonymous · 0⤊ 0⤋