Question, are the rising gas prices REALLY because of oil executives, or because demand is high&supply is low?

Everyone is blaming the big oil companies for the prices, and I have gotten a lot of e-mails saying we need to boycott the gas stations (which I honestly can't afford to do). But is it really their fault, or is it because the supply is running low? When I was back in school, they did teach us in one of my science classes, that eventually we would run out of oil..... Is that what's happening now, or is it really due to the companies?Question, are the rising gas prices REALLY because of oil executives, or because demand is high%26amp;supply is low?
It is partly because of both. The OPEC is usually the one that tries to control prices. OPEC are the biggest countries and firms of the oil industry and they come together to control supply. They basically act as a monopolistic firm and if you didn't know, monopolistic firms have control of product prices. They basically set a price and output where they can 'maximize profit'.





This price and output is also dependent on the Demand Curve which is very high and results in higher prices. So it is partly due to both the oil execs and demand. Also understand that OPEC is a profit maximizing entity with monopolistic characteristics so they will do all they can to raise prices, by controling supply.Question, are the rising gas prices REALLY because of oil executives, or because demand is high%26amp;supply is low?
Yep, it's the simple answer...


Oil is a finite resource that we are using up faster and faster - prices have to go up!





The answer does lie in us, the oil users. If we stopped using so much oil then prices would drop (for a while, it's still finite!).





One thing I found amusing is that there are so many complaints on this forum - which is largely Americans and Canadians - about high gas prices when:


a) Americans are paying far lower prices for gas than the rest of the world and


b) Use far more of the stuff per person and hence are the biggest reason for the price increases in the first place


Kind of like looking around to see who to blame for your headache when you're the one banging your head against the wall!
oil execs.
Ok this is something that my husband and I were talking about the other day. When anything happens gas, prices go up. I personally see two things (maybe I am missing something).





First, if things are so bad that you have to raise the prices then why the heck are the industry profits going up? Why not level your profit ratio and keep gas rates within reason? oppps that is a commy idea, don't shoot me. Though capitalism only works if there are consumers. When the consumers can't afford your product then you lose future profits. The concept of securing your future is out and getting greedy for instant buck is in.





The second thing is the price of crude oil is going up because we have manage to weaken our dollar to the point where it is falling to the peso. The exchange rate is where it takes more of our currency to exchange for currencies. Heck, the Canadian dollar was worth more than our dollar the last time I checked. (Makes me wish our currency still was backed by gold and if our greenback be a worthless piece of paper/cloth like, for the lack of a better example, a confederate dollar.) This makes investors look at other ways to secure their investments and oil is one of them.





I also question the situation and wonder if it is not the age old now illegal thing called war profiteering. I thought this administration would learn their lesson on this since Prescott Bush got busted selling war supplies to Germany during WWII.





Maybe it is just me, but things are falling fast and there is no FDR in sight. Hoovers everywhere I look. Just hold on to your shirt, be smart, and enjoy the ride





I hope my semi-educated ramblings made sense.





Kelson127's wife.





This is to the person below me, the US is a big place, further to commute. Like the old saying goes: 100 years is a long time for an American and 100 miles is a long drive for an European.