Why are oil prices so high?

it's because it is scarce and not all countries have their own oil source. some countries who does have it take advantage of making the oil's price high. Why are oil prices so high?
Well as of close of trading yesterday oil was at $101 a barrel. Which is the lowest it has been since April.





They are so high because it is what is known as a commodity, a key product to keep the economy functioning such as gold and metals.





Commodities are the greatest investment and as of such economic problems like now turning to a guaranteed profit investment in shares like oil mean you can make money. More investors mean more money so it costs more.





Also such things like oil being in war countries like Afghanistan, mean there is more risk to supply thus it costs more. Also supplies are at risk due to natural threats like the Hurricanes in the Gulf at present.





There are many reasons but these are the most common.Why are oil prices so high?
There are many answers to the this question. I will add my two cents by saying the oil prices are high because there are many competitors who seek the same product. Globalization has brought industrial activity to places where it did not exist before. Look at China, India, Korea, Philippines, and a few other nations. They are rapidly building a middle class who earns status and wealth. There citizens want Westernized items like cars, electronics, etc. because they think that will make them happy. There desire for these things has fueled their need for oil. Therefore, the U.S. and Europe are no longer the only ones who need it. Greater demand=increased prices. This is why for the first time in 30 years America debates the issue of drilling because we begin to realize that our dependence on foreign oil slowly hurts our economy. I think the best for America to do is to develop their own sources of energy.
One possible reason is that oil is a fossil fuel and resources are nearing depletion.





The other is its being held to ransom by the countries who produce it and the countries (USA) that need it for political gain.
Because the main suppliers, arab countries,know it is runnibg out and want to make a killing before it does. I just hope the world remembers this when it does. With one or two noteable exceptions, they have no other source of income.






Why is Labor in the US $17+/hr? Same reason, supply and demand. If supply exceeds demand, prices drop. If demand exceeds supply, prices rise.
World conflict - the recent devastation in Texas also destroyed an oil supplier - it all makes the prices go up.
Oil is running out


It underpins every economy in the world


Speculators have not helped