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Explain rises in oil prices?

  1. Arvind Babajee profile image60
    Arvind Babajeeposted 16 months ago

    Explain rises in oil prices?

  2. dashingscorpio profile image88
    dashingscorpioposted 16 months ago

    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.

    1. bradmasterOCcal profile image30
      bradmasterOCcalposted 14 months agoin reply to this

      Does that explain the oil prices in the US and especially in CA.

    2. dashingscorpio profile image88
      dashingscorpioposted 14 months agoin reply to this

      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.

 
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