Oil prices rise because of
- war
- environmental problems
- threat of war
- political unrest
- demand
- threat of political unrest
- mechanical difficulties (refinery fires, breakdowns, etc)
- weak US $
- Panic buying and uncontroled speculation
Don't forget hysteria induced by environmentalists who, 40 years ago predicted doom by way of over population (The Population Bomb) 30 years ago predicted doom by way of impending Ice Age, 10 years ago predicted doom by global warming, and NOW predict doom by Climate Change, a catch all term that is really meaningless(but, protects them from criticism of Global warming when reports that give lie to their pontifications come out saying there is no warming, and hasn't been for a few years) considering the climate has ALWAYS changed, that also manages to come off looking foolish because the media and many prominent "environmentally conscious" celebs talk the talk and use resources beyond what any 50 of the rest of us could combined
The Government
- created the uncontroled speculation by not regulating it.
- Is engaged in 2 wars, and is threatening a 3rd this year.
- Has done little to correct Oil concerns
- Mandates a plethora of different distillations of gasoline, causing higher costs, which cause (Ta Da!) higher prices.
- has not allowed a new refinery to be built in decades, creating a bottleneck and (TaDa!) higher prices
- Mandate that everyone buys only governmentally mandated formulations of gasoline, thus creating shortages of the ingredients.
- Make sure that each area of the country has itÂ’s own mandated formulation, which will strain the already over-strained existing refining infrastructure, thus raising prices.
- Create even further price increases by ensuring that each area of the country moves to seasonal blends, which will create even more havoc on the refiners, thus raising prices even further.
The News
- Fuels panic by giving more attention to bad news than good
- Ignores news that would calm the panic.
In some cases intentionally distorts facts, ignores facts, outright creates "facts" that are later proved false, etc
I've got more, just running out of steam here...long day.
The bottom line is, the News focuses on the Iran situation, which fuels panic buying, which drives oil up, while ignoring news of higher efficiency vehicles or other "positive" things which would calm the situation and decrease speculation. People speculate that oil will be $200 in Sept, so they buy now at $150 to be ahead of the curve.
Follow?
Now, is this all a coordinated thing, or just a bunch of random events that make me pay more for my pizza? I dunno.
The good news (well for me) the price of pizza here has not increased...