High Oil Prices, is the price right?
154555
Yes they are right. The prices are determained by the future supply and demand of oil.  Iraq is not why they are high.  It is by the increase in world demand with supply shrinking.  Mainly do to emerging economies of India and China.  THe govt regualating anything would make it worse.
480998
They're high.  But I think don't think we're in the "too high" range yet.  That'll probably be this summer and the year after.  We're still around 80% of the all time high for gas compared to the oil crisis we had years ago.
525316
The short term trend of the price of oil is dependent on speculators' expectations. They drive the short term price of oil. \n\nWhat are some events that might make the price go higher?\n\na fall in the price of the dollar. Oil is priced in dollars so a drop in the value of the dollar will mean a rise in the price of oil.\n\nglobal events that relate to the supply of oil. More instability in Nigeria will increase the price of oil. Election results in Mexico will effect the price of oil. Events in Venezuela will effect the price of oil. What GWB does or does not do will effect the price of oil. A successful terrorist attack on the Saudi refineries will drive the price of oil through the roof.
486127
Declining oil resources and increased demand for oil and petroleum based products will drive prices up.  No-one would dispute this.  Many are optimistic about the market (see references below).  In fact, the oil industry in the United States has done very well under the circumstances.  Profits are up.  Way Up.\n\nUnlike other commodities, oil is complicated by heavy government involvement.  This tends to muddy the picture.  Political power applied through commercial interests and vast marketing efforts have lead the citizens of the US into a false sense of reality.  For example, the rise in SUV sales during the exact time when vehicles size and mass should be reduced.  Profit motivation coupled with buyer ignorance is not a rational economic path.\n\nGlobalization of the market is also coupled with globalization of the distribution system.  This very well might lead to more development in the area of alternative energy sources.  The most promising of these (at least for the American corn growers) is Ethanol.  This and bio-sourced oil products may hold the key to keeping prices down while allowing for expansion and development of economies worldwide.
615592
when oil prices go up, It costs more to make & deliver goods. In turn the price of goods go up. Hence inflaton.
360270
The basic concept is here: http://www.npr.org/templates/story/story.php?storyId=5365439\n\nThe paragraph under "Then who sets the prices?"\n\nCrude oil spot prices are here: http://tonto.eia.doe.gov/oog/info/twip/twip_crude.html\n\nGas prices are here:\nhttp://tonto.eia.doe.gov/oog/info/twip/twip_gasoline.html\n\nGas prices are basically following the crude minus the Katrina killing of some refineries that needed to be repaired so that's probably the spike.\n\nThis is our daily usage:\nhttp://tonto.eia.doe.gov/oog/info/twip/twip_crude.html#inputs\n\nAbout 15 million barrels of crude oil per day now.  It also shows the Gulf Coast's major tank in production like I mentioned earlier around Nov '05.\n\nYou are correct that drilling in Alaska would probably not affect prices that much.  How much?  We don't know.\n\nThere's an article about it here: http://www.usatoday.com/news/washington/2005-11-03-senate-oil_x.htm\n\nUnfortunately, I don't have the DOE study handy.  Maybe you can find it for your purposes here. :)\n\nFor the actual price of crude oil, demand doesn't have to double in order for price to spike up double.  All it really takes is the minds of the traders on the futures market that something political or whatever is going on.  They are the main ones who set the prices that are used worldwide.\n\nOur net imports of oil have grown past 60% and are steadily rising every year: http://www.eia.doe.gov/emeu/mer/pdf/pages/sec1_15.pdf\n\nOne of the points touched on was worldwide demand, including India and China.  They are definitely demanding more and more each year: http://www.eia.doe.gov/emeu/ipsr/t24.xls\n\nIt's slow but it's increasing.  How much this affects prices is unknown.  Predicting the value of the stock market in 5 years is about as easy.  No one really knows.  You have to remember that market prices are always forward looking, so it's what people think is going to happen in the future.  That's what the current price today is based on.\n\nAnd last by not least, the DOE's view on the current prices: http://www.eia.doe.gov/bookshelf/brochures/gasolinepricesprimer/eia1_2005primerM.html\n\nAnyway, this is just a bunch of raw data.  I'm sure that there are about 85 ways to look at it.  Most people here take only one side of the story, but hey, that's life on the Internet.  Have fun. :)
607793
Aren't those two closely related? Political instability in the region is the leading factor in the high price of oil on the world market. With all this sabre rattling going on over Iran's nuke policy it's no wonder the price is up. I think the general incompetence of our Republican led congress (not to mention the level of corruption in ALL levels of government) and improving education in this country ought to be the real issues.
1041619
Yes, but w/good reason.  Gas prices have never been this high w/no relief in sight.  It seems we are limiting our travel b/c we just can't afford to drive in this country.  I know I'm on a gas budget.  Work-home-work-home, maybe a chill spot on the wknd, but that's it.
517097
They (I assume you mean oil companies) have every right to raise prices.  Its called capitalism!  If you want to be picky, why don't people protest bottled water or movie popcorn?  Its profit margin is a helluva lot higher than gas.  \n\nThere are a lot of other options for people if they think gas prices are too high.  Don't drive! Ride a bike, walk, public transportation...
871653
Doesn't matter.  We need oil and will burn oil. If the recent price gouging did nothing to curtail our oil use I don't think the oil companies have to worry about loosing any business any time soon.
1109609
You know the cost of gas/petrol isn't really made as high as it is by the cost per barrell. The oil companies like Exxon, Esso, Chevron, etc. charge a lot more for their gas then the price per barrell.  If you do some research into it you'll see that the oil companies are making a huge profit on their product. Oil/petrol doesn't have to be as expensive as it is and they can still make a profit.\n\nTo answer your question though, I would say yes:\n\n"To date there has not been an obvious negative impact on the economy because of the price of oil. It is partly for that reason that the Federal Reserve is continuing to raise interest rates to help tame inflation."\nhttp://en.wikipedia.org/wiki/The_Price_of_Oil_and_The_Economy\n\nIt's very strange. The cost of oil is raised to huge prices by Exxon, Chevron, etc. which raises interest rates, which hurts the economy. Why?
380150
As much as we ALLOW it to be. That's right, the price IS controlled by the citizens of this country and the amount of abuse they tolerate before standing up and fighting for what is right. Is it right that we as tax paying citizens must work as hard as we do just to buy more fuel to take us to work so that we can pay more taxes and buy more fuel? Enough is enough. The oil companies made BILLIONS in profits last year. How much did you make?
31992
Some people and news agencies argue that labor strikes, hurricane threats to oil platforms, fires and terrorist threats at refineries, and other general problems are responsible for the higher gas prices. Critics argue that these problems periodically push price higher, but that they are not fundamental or long term enough to cause the large jump in gas price. A more fundamental problem that some believe is causing the price to raise is the probability of peak oil already or soon to be reached. Not only is there a limited amount of fossil fuels which have been burnt as fuel, but however much remains will be used faster by a growing industrialized world population and what remains will be more dificult to get since the easiest wells have been tapped and the remaining sources will be fought over in resource wars.\n\nOthers believe that the price of oil is almost entirely speculative, and that the increase in price is due to oil speculation extending into the long term. These people argue that speculators foresee increasing demand, decreasing supply, or both, leading to a long term increase in the price of oil. If these speculators are wrong, current prices may actually be a price bubble, and the price could thus collapse. A July 14, 2005 Morgan Stanley report suggests that opinions of the oil market could burst just like a bubble if indications of declining Asian demand continue.
478979
Lets see, the oil company's own the wells, then they sell to the refinery's which they own. So they are selling it to themselves. they make a profit no matter what it sells for but make a bigger profit if it sells high. My guess is that the prices will go higher. While I wouldn't put it past Bush to invade a country for its oil. I don't think even he can spin this one to invade Venezuela. I think Iran will be a better choice because not many country's like them.
1072226
Yes - the oil companies are gouging - look at the record profits\n\nThe best way to deal with it is by switching to other fuels and reducing our use\n\nPrice is all supply and demand - If the demand is reduced the price will drop\n\nI changed my habits to drop half my mileage driven in a week and am still getting everything done - just fewer trips\n\nall of us together would make a major difference
84095
We'll spend $6 or $7 a gallon for gas because:\n\n- We're willing to.\n- Supply and Demand will dictate that price or higher.\n\nI saw a segment on 60 Minutes a couple weeks ago about huge reserves of oil in Canada. The reserves reside within soil.
909970
I see.It is uncomfortable.But the oil have it's price.