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  • Answer Upon - Two Reasons Why Oil Prices Have Been so High Lately

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    es. Indeed many insurgents in Iraq have targeted pipelines and oil reserves reducing these oil supplies. Basic supply and demand dictates that (ceterus paribus) if supply is
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    From the 1970’s until 2004 the world has seen oil prices fluctuating but remaining under the $50 per barrel price level. However during 2004 especially in the fourth quarter we saw oil prices at record levels, seriously weakening the US dollar. Since then there seems to have been an increasing amount of reasons to sustain prices at such a high level.

    The first main reason is due to the war in Iraq, because Iraq is a large oil-producing nation, the war has had a great affect on the barrel price. The main driving force is the so called ‘security premium’ that has been applied to production. Insurgents in Iraq are well aware of how much disruption they can cause by targeting oil supplies. Indeed many insurgents in Iraq have targeted pipelines and oil reserves reducing these oil supplies. Basic supply and demand dictates that (ceterus paribus) if supply is r

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    we saw oil prices at record levels, seriously weakening the US dollar. Since then there seems to have been an increasing amount of reasons to sustain prices at such a high level.

    The first main reason is due to the war in Iraq, because Iraq is a large oil-producing nation, the war has had a great affect on the barrel price. The main driving force is the so called ‘security premium’ that has been applied to production. Insurgents in Iraq are well aware of how much disruption they can cause by targeting oil supplies. Indeed many insurgents in Iraq have targeted pipelines and oil reserves reducing these oil supplies. Basic supply and demand dictates that (ceterus paribus) if supply is

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    The first main reason is due to the war in Iraq, because Iraq is a large oil-producing nation, the war has had a great affect on the barrel price. The main driving force is the so called ‘security premium’ that has been applied to production. Insurgents in Iraq are well aware of how much disruption they can cause by targeting oil supplies. Indeed many insurgents in Iraq have targeted pipelines and oil reserves reducing these oil supplies. Basic supply and demand dictates that (ceterus paribus) if supply is

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    force is the so called ‘security premium’ that has been applied to production. Insurgents in Iraq are well aware of how much disruption they can cause by targeting oil supplies. Indeed many insurgents in Iraq have targeted pipelines and oil reserves reducing these oil supplies. Basic supply and demand dictates that (ceterus paribus) if supply is
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    es. Indeed many insurgents in Iraq have targeted pipelines and oil reserves reducing these oil supplies. Basic supply and demand dictates that (ceterus paribus) if supply is reduced and demands remains the same, prices will rise. This is exactly the situation we have seen. Such activity has meant occupying forces have had to protect pipelines and refineries as much as is possible, however due to how vast the length of some supply lines, this protection can prove a very difficult task. We saw a similar spike in oil prices when the first fighting broke out in the Iran-Iraq war in the early 1980’s and when Iraq invaded Kuwait in the early 1990’s. Heightening tension in Iran is not helping oil prices at the moment; as Iran is the fourth biggest global producer.

    The recent wave of hurricanes to hit America; a large oil producer and a massive oil consumer, hav

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