• Law & Legal Issues
  • Oil and Oil Filters
  • Economics
  • Oil and Petroleum

What are the causes of the high price in oil in US today?

User Avatar

Wiki User

βˆ™ 2006-08-31 04:00:06

Best Answer

Partially, it's a matter of "supply and demand". Asia is using far more oil than in the past. There is an economic surge in the Far East, and they are using much more oil than they have in the past. Couple that with the fact that the U.S. is using far more oil as well. We have more drivers driving more vehicles. We have more factories using more oil and electricity. Much of the electricity in the U.S. is generated by oil fueled generators as opposed to the nuclear generators that are used in much of the rest of the world. While Middle East oil fields are still generating oil, they are able to charge whatever they like, since Environmentalist extremists are preventing any possibility of drilling in the large, untouched oilfields of Alaska. We are also having trouble getting any kind of action in the oil shale and tar sands of the Western U.S. So it's only PARTIALLY supply and demand. We're being held back by the extremists and it's costing the ordiary people who only want to have a car to go to work.

2006-08-31 04:00:06
This answer is:
User Avatar

Your Answer


Related Questions

How do I find information on high fuel and oil prices?

There are several reasons for why the fuel and oil prices are so high. One reason is that the commodite traders bid up the price on the gas contracts. Another reason is beacause the oil prices are a bit rude today, mainly due to oil costs account for a large portion of the price on gasoline. So if the oil price rises so do the price at the gas station about six weeks later.

What is the price for Saudi light crude oil today?

$ 91,34/barrel

What is the price of oil in 2001?

In 2001, the price of oil varied from a low of $15.54 per barrel in December to a high of $25.27 in February.

How would high oil prices cause inflation?

oil in general is used i production of goods and services.. oil as in petrol oil can be used in manufacturing products and if oil price is high, cost of production would be on the increase so this will result in the increase in the price of that product.

How much is a Barrel of oil?

Today Dec 09, 2008 the price for a oil barrel is 35.16 usd

What causes high oil pressure in a Ford 390?

Could be too thick of oil used.

Crude oil prices in 1976?

In 1976, the average price for a barrel of crude oil was $13.10 (about $50.19 today).

Why is the price of oil so high?

The price of oil can be attributed to supply and demand. Oil is a non-renewable source of energy. It is found naturally and if the earth hits the limit, it will stop producing. The demand for oil continues to rise as people need it to power their homes and vehicles. Because the demand is so high, and the supply is limited, this creates a higher price for oil.

What is the price of sour crude oil?

There are 3 different types of Crude Oil, 1) Light sweet (WTI= West Texas Intermediate): High-quality, Sweet oil, traded at the NYMEX (Newyork Exchange) 2) North Sea Brent (Sourced from the North Sea): Light oil 3) Oman Dubai: Sour oil (Crude oil is light if if the density is low & heavy if the density is high. Sweet if sulfur content is low and Sour if sulfur is high). Now check the day today price at market....

Which is most consistent with the law of demand?

An increase in the price of heating oil causes a decrease in the quantity of heating oil demanded.

What causes high fuel input pressure on a 5.9 cummins at high rpm?

the high pressure oil pump

What was highest oil price ever?

around 1 year ago the price was $145.29 the record high.

If the price of oil rises around the world what will happen to oil production in Texas?

They will produce less of it because when the price raises, the buyers want less of it because the price is too high.

What was the Oil price in 1982?

The price of crude oil in 1982 varied:High: $30.80 per barrel in JanuaryLow: $27.64 per barrel in April

Current price for heavy fuel oil?

Today´s (4 October 2008) price of standard 380cST Heavy Fuel Oil is around 140 Euro/ton.

You want the price for automotive gas oil in nigeria currency for today?

Yes in nDollars

Causes for high oil pressure in a Saturn ls2?

A cause for high oil pressure could be related to the type of oil that is being used in the vehicle. Thicker based oils such as 10w40 and higher could cause high oil pressure.

Is oil costly?

Yes, very. Because of the tedious process and shipment it causes the price to increase.

What is oil price hike?

Oil Price Hike is the increasing of the oil price.

What causes co emissions to be high?

Burning of fossil fuels such as coal or oil.

What causes the oil pressure gage to show 100 and above on a big truck?

High oil pressure or a faulty oil pressure gauge.

What is todays Singapore platt price for cst 180 hsfo?


What causes oil price increase?

the transporters of oil are having a hard time transporting the oil or the 1st batch of oil is used or bought by people even before the new batch arrives.

Why is petrol price inelastic?

I see this is not in the economics section and it is an economics question.Inelastic: Price does not vary quickly with supply and demandPossible reasons:OPEC works to keep the cost of Oil constant and high.The oil companies have reduced the available additional capacity in the North American Market damping the price and supply fluctuations.Oil is a long supply chain product, this means that when the demand drops, the oil to make it was purchased months ago and the price will remain high until that oil is used up.Oil is a large stocking item at both supply terminals and the gas station. This means the fuel you buy today was purchased at the station as much as a month or more ago.Gas is a large cost item for the station and the price charged for it today MUST cover the purchase of replacement supplies.One of the above reasons works in reverse to the way you would think so use the examples carefully

What are the causes of price fluctuation in agricultural products?

Like everything else, it is supply and demand. There are artificial stimulations to the market that require time to sort out. For example, the current high price of fuel oil, not only creates high production costs, but also a higher demand for feed corn supplies by the ethanal production industry.