why is crude oil rising in price?
442075
Because oil resources dont grow with growing amount of usage of crude oil resources reamin static and usage grows dynamically
369352
Answer to Question one:  There is strife in Nigeria and Iraq driving gas prices up.  There is also a potential nuclear war brewing between the US and Iran, the forth largest producer.  For some insane reason, the fact that oil prices are skyrocketing isn't causing the powers that be to think twice about causing another war.  Finally, China and India are growing in economic capacity and need oil to build their economies.  \n\nAnswer 2:  Because the insurgents are attacking the oil infrastructure in Iraq and that's Imperialism.  I guess the US could exact tribute from Iraq, but were they to do that, the country would have a revolution within a few minutes and then they wouldn't sell any oil to the US.
22456
exploring for oil is expensive and youmight not even find a good oil field. While price of oil was low, there was no demand for exploring that particular spot. Once price of oil increased, it was deemed worth the risk to explore this place, which lead to discovery of oilfield.\n\nOil price is also driven by supply and demand. The decrease in demand due to Iraq war and increase in demand from fast-growing China lead to world-wide increase in oil price.
989569
Truthfully and without sarcasm: no. Plain and simple. The hike in gas isn't just because of us invading Iraq. More and more people are using gas: it's the law of supply and demand. If the demand for a product goes up and there's a little supply (there really isn't a small supply, but these countries have to supply the whole world) the price goes up. Plus, with us being in the Middle East, other huge oil producing countries like Iran--especially with the controversy over their nuclear weapons program--might sell less oil to us, thus lowering the supply with the high demand, increasing the price.  And as long as the American people can and will pay for the gas, they'll keep selling it.  Also, as a result of whatever sanctions or mandates are out there on some foreign oils, prices will go up.  Just because there are oil fields in Iraq, doesn't mean that we went in there for that. Why would we do that? If the gas prices were moderate while Saddam was in power, without this huge hike in prices, why would we go in there specifically for oil? What would you do if you suspected a foreign power was invading you to overthrow you, take your money from the oil away and put it in their pockets? You'd do the same thing Saddam was doing (sabotaging oil fields and the pipelines).  The only reason why the oil prices went up to begin with during the Invasion was because Saddam felt that he wasn't doing anything wrong (like the genocide, even building up his military) and that the only reason the Coalition (led by the U.S.) was invading his country was because of the oil. And when the oil prices get high enough, don't you think people will find different venues around them? Like more carpooling, public transportation, bicycles. I know when they get so high that it's really burning a whole in my pocket, I'm buying a train pass.
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. :)
710554
They are both commodities which do not directly affect each other.  Although, if the price of crude grows to a high dollar amount, it may stunt growth and slow spending in the market there by lowering stock prices (making gold a more attractive investment option).  Same goes for if oil drops, the economy will most likely prosper and gold won't be as attractive (i.e. the 90's).
1056073
It is a real concern, but whenever someone makes a prediction about when a country of the world will reach peak oil output, they do so with what then is considered a researve.  As the cost of a barrel of oil increases, sources for oil that were once not considered a researve then become on because at that cost it is economically viable to recover it.  With the recent spike in oil prices, North America can now clasify the tar sands in Canada and the oil shales in Colorado oil researves, and that being the case, it is estimated that in the US alone, we now have more economically recoverable oil then Saudi Arabia, the worlds largest exporter.  As the price continues to increase, other marginal sources will become economically viable.  Sooner or later, we will reach a point where there simply isn't enough oil available for any price, but that is still a ways off yet.  I believe that before we reach that point, oil will be more expensive then alternate fuel sources.  Through simple economics, I believe that people will begin using these alternate fuels simply because they are less expensive.  I believe that the high cost of oil will spawn invention and inovation into the energy sector, and I believe that has already begun.  We are working on increasing production of biodiesels and ethenol, and there is increased research into fuel cells and electric autos.  I think the future lies in hydrogen burning technology personally.  We already have engines that burn Hydrogen, but we're still working on the fuel tank dilema.  So, for a long answer, I believe that there is and will be time. I'm looking foward to being put out of buisiness.
12059
Watch for a pre-hurricane season run in the spring/early summer.  VLO, CHK and ECA were good to me last time oil prices were climbing.  Wait for momentum to kick in that sector again.
43493
The argument is that if the price of oil is high enough we will turn to alternative energy sources, one of which is ethanol, made from agricultural products, primarily grain. This demand for high-priced fuel will raise the price of grain, which is also used for making bread.
1048854
As you know, the cost of crude refineries pay is set across the board globally. Which in turn they charge the same price. It is mainly these franchise gas station compnaies that change the price, who are told to change the price as the market flucuates. Which in turn the station across the street wants to stay competitive by adjusting their price accordingly, up or down. It's all about the supply and demand now. The United States uses approx. 84 million barrels a day, when our supply is just 85 million.\nAnyway, here is a good couple vids to watch.
808497
Oil prices are not very elastic.  Once demand exceeds supply, the price will skyrocket.  Excess production capacity is marginal supply that comes into play when the price goes up.  It may be a well that costs more to operate until oil is at $70 a barrell.  If demand is really great, then this capacity is used up.
457866
The price of gas is going up due to the increase in price of oil (from which gas is refined) in the world markets.\n\nIt is not a question of supply and demand. There is as much oil being produced and consumed last week as this week. It is just that the stock and commodity markets (mainly in New York) control prices and push the prices up for their profit.\n\nThese commodity market types rely on politicians like George W and Cheney to use violent language. They will then jump on the bandwagon by bidding prices higher.
348889
supposedly it's because of "weapons of mass destruction." but we all know it's because of the oil. the shitty part is now bush has had us over there 3 years, and the fuckin gas prices are still pushing $3 and probably $4 in summer.
19084
It's a comodity that's traded on a comodities market. Supply and demand determine the price each month which is why it goes up and down.
214543
Crude oil price fell by $1.00-Jan. 24th.\nper barrel in Alaska.
390170
They raise prices by restricting supply. They try to maximize their income without driving their customers to alternate fuels or into a depression. Either would reduce their income.
640735
Oil prices are high because the demand is high.  \n\nImagine you had a pill that cured every health problem--obsesity, AIDS, cancer, and everything in between.  What would you sell it for?  You could sell it for $1 a pill--because everyone would want one.  Or, you could sell it for $1 million a pill--because everyone would want one.  Some people would sell it for $1.  Some people would sell it for $1 million.  People would fall everywhere in between.  \n\nWell, the oil companies don't have a magic pill, but they do have something that most of their customers cannot imagine living without.  They've realized that they can make a profit at $1.50 a gallon, but they can make a much better profit at $3.50 a gallon.  Why wouldn't they raise their price?\n\nAlthough I think the high prices suck, in the long term it is a good thing, because it will increase efforts to develop new kinds of energy and cars that are more efficient.\n\nBrazil has a fuel that is similar to ethanol that is made out of sugar instead of corn.  (Sugar is their main export.)  Since they developed this fuel, Brazil required cars to run on the stuff, and they are completely independent of foreign oil.  The U.S. should do the same thing with ethanol.  We could be done with foreign oil in ten years.