Umer

Why is it that incidents which are relatively small in the context of the whole oil market worldwide, have such a major impact on the price of oil?

Current examples: explosion of a pipeline in Iraq, pending law suit against a Russian oil company

Another thing that makes me angry is the fact that a rise of oil prices, triggers an increase of the prices at gas stations immediately, whereas the effect of oil price reductions becomes visible a few days later.

ahmadjee

The immediate effect on gas prices at the pump is probably due to price gouching or lack of good competition. In our little town there are about 5 gas stations probably 5 minute drive from our place and this good competition keeps their prices in check. They will lower the prices to lure more customers as much as possible.

Also, the price increase of oil in the world market is going up due to the natural flow of ‘supply and demand’. With China consuming more and more everyday and other countries trying to catch up .. oil prices have no where else to go than up. Even the hybrid cars won’t make it stop because only 50% of the oil is used in the transportation sector.

From an environmental point of view, coal is the worst culprit. It’s cheap but it screws the environment even more. Developed countries have the $$ to replace it with oil but developing countries like China & India, it’s hard to do business with out it (or at least that’s how they put it). So, I would much rather find energy replacement’s for industries that use coal & oil than to get my car all electric. Well, it will be great if we can have both.

Umer

Here in Austria I´d say it really is lack of competition. And on top of that more than half of the price we pay at the pump goes straight to the finance minister, ie it´s taxes.