Title: What Makes Oil Prices So High
Headings: What Makes Oil Prices So High
What Makes Oil Prices So High
The Four Factors That Drive Up Oil Prices
High Demand
Low Supply
OPEC Quotas
Dollar Decline
Comparison to Past Oil Price Hikes
2015
2013
2012
2011
2008
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Content: What Makes Oil Prices So High
Assets & Markets Commodities
What Makes Oil Prices So High
The Four Factors That Drive Up Oil Prices
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Kimberly Amadeo is an expert on U.S. and world economies and investing, with over 20 years of experience in economic analysis and business strategy. She is the President of the economic website World Money Watch. Read The Balance's editorial policies
Kimberly Amadeo
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Thomas Brock is a well-rounded financial professional, with over 20 years of experience in investments, corporate finance, and accounting. Article Reviewed on May 20, 2021
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Thomas J. Brock
Updated May 20, 2021
High oil prices are caused by high demand, low supply, OPEC quotas, or a drop in the dollar's value . High Demand
Demand for oil and gas typically follow a predictable seasonal swing. Demand rises in the spring and summer due to increased driving for summer vacations. Demand drops in the autumn and winter. Even though heating oil use rises in the winter, it's not enough to offset the post-vacation drop in gasoline demand. Commodities futures traders anticipate increased demand. They usually start bidding oil prices higher in January or February.