Usaully the price per barrel lowers this time of year!
2007-07-16 02:47:25 · 5 answers · asked by George 3 in Business & Finance ➔ Investing
The oil companies claim that demand is still high. The OPEC producers are disinclined to increase output. So the price for crude stays high.
Generally speaking, it is becoming more difficult to find new oil fields and extract the oil in them; so the investment cost is higher to develop a new field.
Gas prices are more affected by local conditions. In the US, the flooding of a mid-west refinery has pushed prices 50cents a gallon higher in the last week.
2007-07-16 02:51:19 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Remember: the oil market is world wide. What you see where you are is only a small piece.
The oil market is a beautiful example of intro micro economics supply and demand. When people demand a lot all of a sudden the price will go up. It doesn't matter if they have any use for it now because it doesn't have to be consumed immediately; it can be stored. Many time, people worrying about a price increase will start buying to store for future use, thus, worry that the price will go up makes the price go up.
2007-07-16 09:56:36 · answer #2 · answered by Ted 7 · 1⤊ 0⤋
gas is lower than it was.... I paid $2.87 yesterday. some places want $3.05...
I can drive 3 miles and see a big price difference.
one word comes to mind with the oil companies. Greed.
2007-07-16 09:52:07 · answer #3 · answered by Anonymous · 0⤊ 0⤋
demand is up. China is burning a lot of oil these days....
2007-07-16 09:50:56 · answer #4 · answered by John M 7 · 1⤊ 0⤋
Because demand is still increasing!
2007-07-16 09:53:30 · answer #5 · answered by Ryan J 2 · 0⤊ 0⤋