What caused the Oil price to rise? Oil traders searched the open market for oil purchases. Japan received 20% of its oil from Iran. BP received 40% of its contracts from Iran. The buyers bought oil now and sold it latter when it was expensive. Oil companies experienced record level profits. The public outrage direct charges at the big oil companies that they caused the shortage. Oil companies defended their position that huge price fluctuations in oil inventories were cyclic and profits were needed to offset drops in price. The oil reserve had billions of gallons of oil in inventory. The oil inventory served to cushion against sudden surges in demand caused from an especially cold winter. The oil companies bought the oil cheap and stored the oil in tankers and oil storage containers and remained fat on the oil. The game increased in danger as the price drove upward and warnings that increasing price could suddenly turn because supply was too large. Political and social instability increased the fear and buyers pushed up price. [Learn More ...]

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