Why did or how did a barrel of oil that cost $56 a year and a half back cost $128 today? What has happened?

That is over a 110% increase in price adjustment. How come production has still remained the same if not increased, but the prices keep rising? What has triggered the price increase to over 110% ? Who is keeping all the profits? Where is all the Oil money going?Why did or how did a barrel of oil that cost $56 a year and a half back cost $128 today? What has happened?
Many factors led to the increase including world demand, the relatively low priice of the dollar and speculation.





Of these, speculation has led to the sharpest increase in a barrels price. Purchasing oil futures can be very lucrative and many institutions and private investors are in it, but this is driving the price to record highs. when they sale the contracts, they keep all the profits.





But demand for oil has not doubled in the past year, so its easy to see why speculators have driven the oil prices so high. At some point, this bubble will burst sending the price tumbling.Why did or how did a barrel of oil that cost $56 a year and a half back cost $128 today? What has happened?
Demand for fuel is increasing at a great rate, probably driven by the booming Chinese economy,its the old supply and demand thing. In Australia the monopoly fertilizer company Incitec was recently accused of hording fertilizer to drive the price up. Incitec profits through the roof price of fertilizer has doubled in 12 months.
Actually, it is the cost of the barrels themselves... there is a rain barrel shortage that has caused a reduction in oil barrels as factories refit and produce rain barrels instead...


the price of the oil is still $1.56 a barrel - same as in 1950's... it is just the barrels cost $126.44 now!!!


;)
there are more users of oil then supply. the law of supply and demand takes over. people who are willing to pay more will get it. the only way to stop this is walk/ride bike/public transportion.
9 years ago I think it was $11 a barrel what happen?


I should of invested into oil stocks


$128 still might be a deal


now you have hurricane season