OPEC has decided to cut back on it's oil production.
The Organization of the Petroleum Exporting Countries.
When the counties who drill the oil (agree) to slow down it means there will be less oil supplies. If the demand stays the same and there is less oil available on the market they get to raise their prices.
This causes investors to also put their money on energy stocks as they assume they can make profits as the prices go up.
Creating "man-made shortages" is a fast way to raise oil prices.
Does that explain the oil prices in the US and especially in CA.
In a large part it does. Also there are (regional) differences price variations on everything based upon location.
A 4000 sq ft house in Maui is worth more than the same house in Santa Ana which costs more than if it were in Elgin, IL.
by Aqeel Saeed8 years ago
It fluctuate between $ 148 per barrel to $ 33 per barrel.
by Alexander Pease7 years ago
What do you think makes the price of gas so high?Is it the company making the prices go up, or is it another factor like, exporting/importing, etc.
by Jane Stevens6 years ago
Truck drivers couldn't fill their rigs, Airlines couldn't afford to fuel up, shipping prices drove prices up on the shelf, companies started laying off people, the job market started falling in big numbers, the...
by Lgali8 years ago
Oil Prices Going up Means Economy is Doing Good..
by Ben Evans8 years ago
We are in a recession and demand for oil has dropped yet we still see prices rise. This is while supply is actually abundant. Some people say there is a glut.Oil demand in economic terms is described as...
by David7 years ago
Where do you expect oil prices to go in 2011?
Copyright © 2018 HubPages Inc. and respective owners.
Other product and company names shown may be trademarks of their respective owners.
HubPages® is a registered Service Mark of HubPages, Inc.
HubPages and Hubbers (authors) may earn revenue on this page based on affiliate relationships and advertisements with partners including Amazon, Google, and others.