The Supply and Demand of Oil

Running head : THE SUPPLY AND DEMAND OF OIL

The Supply and Demand of Oil

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The Supply and Demand of Oil

Public Ignorance of Rising Oil Prices

President George Bush

Most people , especially the anti-American regime , blame George Bush as the main reason why oil prices in the international market has been increasing in the recent years . According to them , George Bush serves as an avenue for Iraq and its allies in the Middle East to cut their supply of oil in the world market as a payback

' for attacking Iraq . Back in the early 2000 's , George Bush commence a war against Iraq for the reasons that he want to end terrorist groups that houses in the said country as well as to spread democracy in the middle east . Iraq , one of the top oil producers in the world market , in response to the action of the United States , Iraq , together with other Islamic countries , cut their oil supply in the world market for United States to suffer from rising oil prices since it is the main consumer of oil in the world market

Little this people know , George Bush is not liable for the rising of oil prices in the international market . Iraq as well as other oil producing countries around the globe is a member of OPEC - an organization of oil producing countries operating as a cartel . Cartel just like OPEC , manipulates the supply of a certain good in to influence the market price in the market for the benefit of its members and /or depends on the capacity of oil that its member countries can provide to the world market . The said cutting of oil supply of Iraq and other Islamic countries was just a move initiated largely by OPEC and was not because of the war commenced by George Bush . Even if the said attack in Iraq of the United States influenced the decision of Iraqi government and other Islamic countries to cut their oil supply in the world market , but its level of significance was not enough in to say that George Bush was liable for the rising of oil prices in the market

Price Gouging

Another fallacy that most people believed to be one of the factors that triggered the rising of oil prices in the market would be the price gouging of domestic oil firms in the market that unreasonably increases the prices of gasoline in the market . People that believes in this factor claims that domestic oil firms only wants to further increase their profitability and only uses the condition of world market for oil as a leeway in to justify its indiscriminate and unjustifiable price increase on gasoline and other petroleum products in the domestic market . Moreover , say that price of oil in the world market indeed increase due to shortage of oil , domestic oil firms charges more than the amount that they should charge to their customers just to maintain their profitability

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