General Discussion
In reply to the discussion: Why is the price of gas going up? [View all]FarCenter
(19,429 posts)And how much does it have to do with Iran?
There have been modest increases in price following sabre rattling on both sides, but Iran is not the only factor. There is unrest in Nigeria for example. Also significant is the rise inconsumption by developing countries.
Are the oil companies betting on future military action against Iran?
No, the oil companies would be trading to hedge positions. The speculators in the futures market would be making the big bets on whether or not there will be a shortage or interruption from Iran.
Or do we have a shortage of oil at the present time?
Emerging economies are placing more demands on the supply. There is no physical shortage as long as prices are allowed to rise so that users who cannot afford the higher prices cut back their consumption.
Or is it just greed by the big oil companies?
The big oil companies don't set the prices, if by big oil companies you mean Exxon Mobil, Shell, BP, etc. The prices are set by the futures trading markets and by the national oil companies of the big producing countries.