What causes high oil prices

What causes high oil prices - Oil and Gas Prices Roger...

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Oil and Gas Prices Roger Williams November 1, 2008
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Does the roller-coaster fluctuation of oil and gasoline prices make anyone want to scream? Gasoline and oil prices have fluctuated so much in the last two years that is affecting the entire economy of the world. As a result of supply and demand and oil price futures rising oil prices are causing gasoline prices to rise as well. What causes high oil prices, as with anything else in the market industry supply and demand controls the price. OPEC the Worlds largest oil supplier controls the supply, OPEC the Organization of the Oil Exporting Countries, which was formed the week of September 10 th -14 th , 1960 at the Baghdad Conference by Iraq, Iran, Kuwait, Saudi Arabia, and Venezuela. They were then joined by nine other members over the next 30 years, those being; Qatar (1962); Indonesia (1962); Libya (1962); United Arab Emirates (1967); Algeria (1969); Nigeria (1971); Ecuador (1973); Angola (2007); and Gabon (1975-1994), OPEC’s original headquarters was located in Geneva Switzerland until Sept, 1 1965 when they moved to Vienna Austria. Until recently oil was thought to be a limitless supply, which exceeded demand. OPEC has now concluded that they 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 30 years tried to regulate supply and demand to keep prices stable, and keep the world economies stable. “OPEC’s Objective is to co-ordinate and unify petroleum policies among Member Countries, in order to secure fair and stable prices for petroleum producers; an efficient,
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economical and regular supply of petroleum to consuming nations; and a fair return on capital to those investing in the industry.” Ed. OPEC.org 1, Nov. 2008 / June 13,2003 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
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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 - Oil and Gas Prices Roger...

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