Verified answer

None of the above. Much of the recent spike in oil prices was driven by market speculation--a "frenzy" in the commodities market. That's not uncommon in commodities. It wasn't going to last--which any educated person knew.. That doesn't mean it wasn't a real problem -- it was. But inherently short term.

The oil companies DID take advantae if it. Their price increases were well above the level needed to offset the actual rise in costs. And they are not bring prices down as much as the fall in the commodity price of oil would call for.

The wake-up call to American car owners was coming sooner or later. The Republicans deliberately dismantled or blocked every effort (starting in the Reagan administration) to make America energy independent.and until 2 years ago ridiculed everyone who tried to warn that something like this was inevitable under their policies. Personally, I have no sympathy whatsoever for the millions of "poor victims" who couldn't afford to gas up their SUVs.They were warned for years. They got exactly what they deserved.

This whole episode is not going to change the overall future course in energy production--though it may speed it up. The technology has changed. No one is going to buy gasoline powered cars 20 years from now. Quite aside from environmental concerns (which are rapidly becoming critical, whether anyone wants to admit it or not) oil is simply obsolete. Electrics--and possibly hydrogen fueled--cars, alternative systems for energy production like wind and solar--are all already more cost effective or soon will be. The oil companies know tis--they wee simply taking advantae of a market dysfunction to make a quick buck. But if you look at what these companies are doing (try reading their annual reports) they are NOT investing in oil exploration or new refineries. They are putting their money into alternative energy, preparing to switcch over to a new technology. They have no choice. The technology is beginning to shift. They will either adapt or die. Or end up lke the auto companies, who refused to learn and are now suffering the consequences.

In case you haven't noticed the Republicans lost. The answer is no. Gas prices are dropping based on two factors which are both related to economic conditions. The first is that speculators have been dumping their oil stocks which has caused the price per barrel to drop below a two year low. The second is that supply remains stable, but demand has reduced. No conspiracies here just simple explainable economic conditions at work. If anything the price per gallon is still higher than it should be based on the price per barrel and demand arguments. Edit: I got the sarcasm. However, there are people who actually believe these things. It is not good to reinforce false perceptions even for sarcastic value. So I posted the right information for those who might be so inclined to examine the situation rationally. Cantu: Opec has tried this twice in the last couple of months (cutting production). It has not produced the result they desire. OPEC can only cut production so low before it seriously effects their bottom line and in essence becomes a case of cutting their own throats. However, the United States does not get the majority of it's oil from OPEC sources so it may not produce any effect at all in the American markets.

It would seem to be a simple manipulation of supply and demand. If the oil production companies decide that they will cut supply when demand is steady then economics state that the price will go up, therefore they can of course manipulate the price. If, as is the case, world leaders head off to oil producing nations and beg them to increase supply when the price is high, then there will be a decrease in price as demand for the highly priced commodity decreases as peoples trends change to cope with the new inflated price.It is in the oil producer's interests to sell as much oil at a high price so as soon as the supply increases and the price decreases they will cut supply again. If the oil producers then cut back supply enough in order to produce just enough for the demand it is only a matter of time before the price can rise again and the cycle can start all over. Whatever happens the oil companies win and as with any supplier they can manipulate the supply and therefore the price, unless of course a greater force decides to have a war in the vicinity which then allows the governments to manipulate the production of oil ..... a completely new topic...!

It's the OPEC consortium of nations that manipulates the world price of oil to their liking. Right now they want to bring up the price a bit to about $60. They don't like huge swings. Nobody can make long term plans on development when they don't know what their income will be. The smaller member nations (Iran, Venezuela) want the price higher because they are trying to arm themselves and build a nuclear capability.

What caused gas prices to spike were speculators betting on our oil running out. Instead, people got wise and started to conserve energy, buy fuel efficient cars and do other things to cut their energy in half. In return, less fuel is being used and now prices have gone down.

All this without drilling.

Oh Gee I don't know. Can a restaurant owner jack up the price od a steak when he wants to...just so he can put it on the blackboard once a week as a "special"??

of course they can!! It is a cartel. they conspire to do it all the time!! Competition is not about keeping prices down for the consumer...it is about keeping prices UP for the seller!! They ALL conspire in that!!

Trading of FUTURES on the stock market has drastically lowered the price of oil and gas.

No I still think supply and demand.

they have some control but mostly it is controlled by opec and speculators

yes.