What+causes+high+oil+prices

What+causes+high+oil+prices - What causes high oil prices?...

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What causes high oil prices? As with anything else in the market industry supply and demand controls the prices. OPEC the Worlds largest oil supplier controls the supply, OPEC which was formed in 1960 by oil producing countries to regulate supply and ultimately the price of oil, which up until recently oil was thought to be a limitless supply, which exceeded demand. OPEC has now concluded that we have reached the peak of oil supply and are now on the downtrend, and cannot increase production past what it already is (OPEC World Oil Outlook 2007). OPEC has for over thirty years tried to regulate supply and demand to keep prices stable, and keep the world economies stable. With a recent spike in oil use in the last few years, by other countries now starting to use more oil, production has only increased by a small percentage. This has caused oil prices to rise rapidly, as oil prices rose so did the price of everything else which caused a large slump in the economy. What affects oil supply? Along with the oil producing nations of OPEC the U.S. does have its own oil fields, the U.S. also gets oil from Canada and Mexico. Oil comes from pockets deep beneath the ground called oil fields, oil can also be found in layers of oil shale which is impossible to refine, oil can also be found in oil sands which is not hard to refine but it is difficult to mine, it has to be strip mined, but some of it is so deep it will be
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This note was uploaded on 06/02/2010 for the course COM COM/150 taught by Professor Tobymaguire during the Spring '09 term at University of Phoenix.

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What+causes+high+oil+prices - What causes high oil prices?...

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