Reasons for higher gas price....
1. Higher Demand by emerging markets
2. Devalued dollar
3. Higher prices with same % mark up equals larger profits
4. Demand for Decreased Foreign Dependence on oil... US companies can only afford to drill for oil when its over $100 a barrel. Now it is and so the drilling has begun in TX and also with Canada's oil.
5. Futures.... Oil is not sold direct but through the methods of oil futures. This means that its not today's price on oil but a factored method of selling future oil purchases based upon future forecasts that could cause supply to drop. The fact that the US is in Iraq and talking about Iran as a threat drives oil futures up...
I could go on...
Its not really that complex... |