quote:
Originally posted by Brentenman:
One word: Iran.
The recent and escalating crisis the world has with Iran is making oil prices go up.
Second, I also see a factor with Hugo Chavez and his leftist antics in Venezuela. He wants and has been nationalizing foreign interests in Venezuela of late.
Brentenman, you got this one right. it is because of the THREAT of violence in Iran, and it is precisely because of that threat.
The price of oil is totally dependent on supply and demand. The American threats on the stability of Iran create instability. Consumers of Oil seek secure supplies. US threats against Iran threaten that nation's ability to supply oil, and other producers are under pressure to replace that supply.
It works the same way any boycott works. If The Iranian supply is threatened, the Saudi Supply becomes more desireable, even though it is the same product. So Saudi Oil, which is limited by productive capacity comes under buying pressure. Iranian oil is being shunned. The result is an immediate spike in the cost of crude oil, and that translates into a price increase at the pumps.
YEP, I AM BLAMING GW BUSH, AND THE DOCTRINE OF DOMINATION FOR THE INCREASE IN THE PRICE OF GASOLINE, BUT,
Brentenman, you are correct, the spike is because of the crisis in Iran.
I blame Bush/Cheney because THEY ARE THE DESTABILIZING FORCE.