Do you know what causes the high oil price in this November 2007?

Answer 1

sure -- demand from China and India is way up from 2002 levels while world production hasn't grown much at all.

Fact: most of the world's oil production is managed by state owned oil companies whose real mission is to milk the product for the maximum current cash flow. Thus, reinvestment in the business is run by domestic politics rather than financial decisions. [In the past decade, Exxon has re-invested more than its entire profits -- afaik, no state owned company has come even close to this even after allowing for the level of taxes Exxon pays.]

Since they can't be effectively sued, state owned companies can't borrow money. This means that between not reinvesting from cash flow and not being able to borrow, their investing is low and production levels tend to fall rather than rise.

This squeezes output while demand is rising -- presto! big price increases.

Answer 2

The cost of crude oil being over $90 a barrell

Answer 3

according to our political leaders there is a shortage,but i think some of our leaders have alot of money tied up in stocks for oil and they regulate how much they would like to see their dividend checks be

Answer 4

One word: greed