Why Are Gas Prices Rising - Big Oil Profits

The gas prices cause frustration around the world. Unless you are in an area like the Middle East, Venezuela or Brazil you feel it at the pump. Gas prices always seem to be on the move. Usually the trend is not lower. It’s going higher. The question this leaves most of us wondering is “Why are gas prices rising??

First we must understand one important factor about the oil market. It is limited. For instance the United States has to import most of its oil overseas in order to meet the demand of its country. If imports were not present the USA could not function being as dependant as it is on oil.

This brings us to the next factor we must understand. The oil market is driven by fear. Whether it is moving up or down in price the reason is fear. It is a fear driven market. The fears can range from anything. War in the Middle East, terrorist attacks in oil producing countries, hurricanes blocking shipping lanes, oil to gasoline manufacturing issues, increased fuel usage by drivers these fears bring the price up.

Fears or problems that bring the prices of gas or oil down include higher than expected oil inventories, consumers driving less, moderate winters, slower economies and terrorist attacks in developed countries like the USA.

The big oil companies thrive on reports that bring prices up. They say that there is no price gouging that occurs in the oil market. The fact of the matter is price gouging has legally been placed into the oil market. Even if the above problems don’t exist just the whisper of them brings prices up.

Posted in Peak Oil News