Why do oil prices rise?

Help me get a good grade , im 15 , In sicence NOW , kthxbie








^_^Why do oil prices rise?
well after my cat discoverd an oil well the goverment came to my house took away my house it was really upsetingWhy do oil prices rise?
The price of oil is tied to the US Dollar and the Dollar is weaker now, so it takes more of them to buy a barrel.
Not one single reasons. Most reasons above are right. But you have to separate roots causes to immediate causes


I think there are 3 main immediate causes :


1/ Emerging economies like China, India are demanding more oil and gas and the supply vs demand is stressing the prices.


2/ The oil is paid in dollar, dollar is weak. So for 1 barrel now people get 30% less value for it than 5 years ago.


3/ In addition to these issues, there are triggering events that raises periodically the price of the barrel : south america crisis between Colombia and Venezuela, small scale guerilla in Nigeria, war in Iraq, trouble with Iran etc...





The root cause of all this problems is simple : oil is a limited resources, located very inequally in the world. Its production will start to decline in 5-20 years.


About the greedinesss of oil companies, just make a comparison : you are paying probably around 1$ per barrel your tap water : it has been pumped at less than 200 m depth, probably less than 10 km from your house and the treatment is minimum compared to crude oil. The crude oil coming to USA has travelled usually between 3000 to 7000 km, has been pumped 1500 to 3500 m deep in the ground in remote and dangerous locations. It has been heavily treated even before refining, gas, water and sand are removed, it is blended usually and some chemicals can be added sometimes. This plus the above constraints are justifying a price which should settle to my humble opinion to a right value of oil. I guess 150 $ should be a right value for this rare resource.
Because speculators are pushing up the price per barrel....of course the facts that the demand is growing and the dollar is weak also play a role, but the supply is growing so the price shouldn't be going up right now......Just lay it at the feet of greedy capitalists!
Supply and demand. As demand goes up and supply goes down, price goes up.





Oil is a speculative commodity...like grain, stocks, or pork bellies (really!). Investors are betting that the price will go up in the future and are driving the price up.





Emotion...people get scared and raise the price of gas long before the market pressures of the price pre barrel hit the gas pump. They are scared about getting enough, making a profit with their gas station, etc.
its the simple rule of supply and demand. when the demand of oil increase and it's supply isn't able to keep up with the demand oil becomes more expensive, otherwise the people selling the oil wont be able to make a profit. there haven't been any discovery of super giant fields and the amount of oil being discovered cant keep up with the accelerated demand for oil, which is increasing because of rising economic powerhouses like India, China and Brazil buying more and more oil to fuel their expanding economies(the major importers in the past were America and Europe), so oil is getting more and more expensive.
because the cost per barrel for the gas companies keeps going up. and the more it is in demand, the higher its going to get.
High demand and low supply?
well the reason for the high price rise of oil is because it is a fuel source that will run out in around 25 years and it will take another million years for the earth to produce more.


put this in detail and add some rubbish facts from the Internet and a* guarantee i am 16 and it worked last year ( ;
ok, the oil is controlled by greedy men in the middle east, when they want more money for their oil they actually cut production, that causes a shortage and the price goes up. Also any natural disasters that effect oil production can have the same effect/
Oil is a resource. We put value on resources and that exposes us to greed and manipulation. Those interested in oil are very organized and they have the attention of many decision-makers. This results in control over prices at the consumer level, and consumers are not intelligent enough to control or stop purchasing the oil products that they consider to be vital to their existence. Consumers of oil products remain vulnerable to the whims of the oil controllers, who eventually determine their profits by knowing their production costs and setting prices for consumers.


Empires built on oil are not collapsing so they must be good at what they do.