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incognito
What is the root cause increasing oil price?
What is the cause of the escalation in oil prices. I have heard it is a supply and demand issue. So is it that demand from emerging markets has increased that much to cause such an increase?
1. Increasing demand from countries like China and India that have not until now imported much oil at all.
2. We have passed peak production in much of the world, which is when drillers extract an ever-dwindling supply. (This happened in Pennsylvania at the end of the 19th century, then California early in the 20th and is happening now in Texas and Alaska as well as the mideast.)
3. The war in Iraq.
4. There are an ever-growing number of petroleum-based products like plastics.
5. Mileage standards on U.S. vehicles have not been raised in 25 years, even as the technology to do so has improved.
L J
Oil is priced on the American dollar. With the dollar now worth nothing, the price of a barrel goes up and up to make up the difference.
jaha
More demand
Less suplly
Columbia going to war with Equador..etc
robert w
demand exceeds supply. root cause.
the 'emerging worlds' are expanding driving up demand of goods.
suppliers of oil have NO logical reason to increase supplys.
some of up costs is from speculation.
src50
It is a combination of growing global demand and financial speculation.
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