Could someone please explain to me why oil barrels are $140? I know there’s enough oil out there. Is it just because of greedy opec? I live in CA and live amongst many oil refineries.
Here are some reasons
1- We use too much gas and we guzzle far too much.
2- China and India are making gobal demand soar.
3- Congress will not let us drill domestically
4- The oil market is tense {Iran, Nigeria} are ticking bombs.
5- Overspeculation is unneedingly rasing prices
6- The dollar is worth less, and inflation is raising it.
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China and India make up half the world’s population. China in particular is heavily industrialized now and they are demanding 1000% more oil than just a few years ago. Also, our own unwillingness to drill here in the U.S. and depending on middle east oil. Supply and demand is the third reason. If oil output stays the same and the demand keeps getting stronger the oil prices rise and rise.
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many factors exist. the most significant ones are likely 1) large increase in demand; 2) inelasticity of demand for oil; 3) weak US dollar; 4) relatively few countries that supply oil; 5) lack of readily available substitutes for oil.