World oil reserves are not dropping whilst oil price soars. What agent is responsible for oil price?

It would be more acceptable that the price of commodities really result of natural, unpredictable fluctuations on offer and demand, not on artificial factors?

2 Responses to “World oil reserves are not dropping whilst oil price soars. What agent is responsible for oil price?”

  1. andyg77 Says:

    It’s so freakin fixed it ain’t funny. Boy am I on the wrong side of the equation…lol

    Last time I checked the remaining reserves added up to about a trillion bbls at 42 gallons each or 42 cubic miles of crude. Currently using 1 cubic mile per year…..oh no 42 more years of this crap. At the current crude price I bet they’ll find a lot more…..

  2. Think Richly™ Says:

    Great question!

    Several reasons.
    1) Increasing demand from developing countries like China and India. They are rapidly growing, and growth requires energy: oil.
    2) Geo-political tensions in the oil producing countries. Iraq, Iran, and other middle eastern countries are politically unstable.
    3) Natural disasters such as hurricanes, landslides, earthquakes, and tsunamis can destroy oil rigs and platforms and pipe-lines. It is hurricane season in the gulf of Mexico.
    4) The strength of the dollar is falling. Weaker dollar means you pay more dollars for the same amount of oil.
    5) And of course, the oil cartel dictates the price of oil.