2007-11-20 05:16:09 · 3 answers · asked by konnie69 1 in Social Science ➔ Economics
Investors in the oil futures market are betting that their will be a major disruption in the supply of oil due to terrorist attacks. By buying oil futures they are driving up the price of a barrel of oil which drives up the price of gas. Refining capacity is another factor as companies have not kept up with investment in new refineries which limits oil companies ability to supply gas.
2007-11-20 09:53:28 · answer #1 · answered by Hubris252 7 · 0⤊ 0⤋
Supply and demand. Simple basic economics. China and India are consuming a lot of oil due to accelerated development. Large demand and limited supply drives up the price. Plus OPEC regulates oil output which also serves to raise the price.
2007-11-20 05:27:12 · answer #2 · answered by Matt D 6 · 1⤊ 1⤋
Because gasoline is made of oil, and oil prices are at historic highs...
2007-11-20 07:14:56 · answer #3 · answered by NC 7 · 0⤊ 1⤋