Why are oil prices so high?

when the bulk of our oil comes from two non-opec nations, Canada and Mexico. Also... if the US is surrounded by oil, Canada %26amp; Mexico, don't you think there'd be enough within our own boundries to not have to worry about OPECWhy are oil prices so high?
It is supply and demand. Regardless of where we buy our oil, the market has a set price.Why are oil prices so high?
We do have enough of our own oil, but the environmentalists don't want us drilling for it.
part supply shortages - Mexico and Russia are in decline...and demand is still strong globally.





and part is speculation on the futures market.
The problem is that most people do not understand supply and demand economics and what the structure is of the cost of gas per gallon. Do you know that we are using more oil now than EVER before! People are driving at an alarming rate. Do you realize how much petroleum鈥檚 used in making plastics and then how many things we use are made of plastics? The oil company makes about 9 cents a gallon as profit. The rest is made up of Federal and State taxes, the cost of exploration and production, Refining and then the cost of the additives that we have to put in the gas (we call it designer gas, thanks to the environmentalist wacko's). Do you know that we have not built a refinery in almost 40 years? (thanks again environmentalist). The refineries that we have are working at capacity and that is not enough to keep up with demand. Do you know that we hardly get any oil from the Middle East? Most people think that is where it all comes from. Not true. We get our oil form Canada, Mexico, Venezuela and Africa, in that order. What we get from Saudi is a very small %. You want the cost of gas to drop....STOP driving, open up the ANWR for drilling and off our coasts (thanks again environmentalist) OR come up with an alternate fuel.
the price of oil by barrel is usually set to one standard...and since middle easern oil is extremely expensive...all oil is expensive...the more fear that is generated that oil will not come out of the middle east...the higher the prices...
Democrats tax it like hell
Because our government is operated be thieves and crooks. Corporate America is the real gov't. Washington then rewards them for their activities because of the higher tax revenues. They get all kind of tax breaks and get to set up monopolies despite previous laws. Supply and demand is B/S. I cant believe you people fall for that. If I sell a little my price is higher. If alot then my price is lower and my profits are still there. Supply and demand huh? And that is why the oil companies have to profit BILLIONS yearly? Politics has blinded you from common sense.
Oil prices are so high because the US dollar is so low.
Why do so many people ask this type of question? The information is out there, free of political spin if you focus on the economics.





Why is the price of oil increasing in terms of dollars per barrel of oil?





Part of the price increase can be directly attributed to the decline in the value of the dollar that has resulted from expanding the national debt, increased credit instruments, and the Fed loosening the money supply that has resulted in devaluing the dollar 32% since 2002. Suprisingly, central banks that float their currency haven't diversified out of the dollar more than they already have sending the value of the dollar even lower.





Various studies have been done and the consensus estimate is the price for a barrel of oil would be around 65 dollars a barrel excluding dollar devaluation, but the story doesn't end there.





Investors and hedge fund managers know that as you devalue the dollar, the prices of commodities like minerals and agricultural products tend to increase, so seeking to offset the effects of dollar declines in their portfolios, many investors and funds have begun to shift more of their portfolios into commodities options, and a good deal of this option trading is computer driven, so everytime the dollar index drops, they are automatically purchasing call options on such commodities, and these include oil, and this is driving the price of oil up even more as the value of the options contracts increases.





What you have is real inflation based on dollar declines being amplified by market-driven hedging, and this is why the oil prices are so heavily correlated with dollar declines.





It ain't rocket science, and that accounts for about 90% of recent price spikes with the residual being driven by speculation over supply disruptions and the fact that we are replenishing the strategic oil reserve to the tune of 100,000 barrels a day.
Because oil is a finite material and the supply countries will not/can not raise daily production of 28 million barrels. And guess who gobbles up 16 million of it daily, all by them selves, leaving the entire rest of the world to fight over a mere 12 million - you got it - the USA.


If we would just reduce our energies consumption to countries with similar or better standard of living, like Germany, we would use 5 million a day less and oil would drop to a quarter of the price for everybody.
The oil companies are cashing in, people may say it is supply and demand, but I think it is just pure greed, and how can we call them out on it, what do we know about the oil supply other than what is painted across an untrustworthy TV screen. But I find it hard to believe there is a low supply, how long has the world even been using oil in mass amounts, not that long.
It is an international market and demand from China and India and others is increasing faster than supply.
law of supply and demand. If supply isn't increased along with the increase in demand the price goes up. For the past few years there has been unprecedented demand for oil from China and India, but because politicians won't allow any new refineries to be built we have limited domestic supply and foreigners can charge us what ever they want
Because of supply and demand.





Oil is a global commodity and can be sold to anyone so more demand in Asia raises the price here very quickly.
Supply and demand.
Ask the Democrats in the senate an house why its high....
B U S H
Because Bush - Chaney want it that way.