e gas crunch in the 1970’s. People waited in lines that stretched for miles, and could only get gas on certain days depending on the first letter of your last name. O.P.E.C. used the money they raised to invest in other countries, placed in foreign banks, currency markets, and to help their own economies through inner development. O.P.E.C. is also extremely interested in maximizing profits, but in such a cartel, it is impossible to find a price that will maximize profits. O.P.E.C. has attempted to raise prices several times by cutting production. According to economic theory, a decrease in supply will yield higher prices. These are some of the reasons The United States must offer stability and continue to have troops in the area, intervening when the worlds oil and its prices are in jeopardy. Currently crude oil prices are rising due to the bombings in Saudi Arabia. "…It has continued to soar, to more than $24 a barrel, up 34% from one year ago, the highest level since the 1991 Persian Gulf War." (3) This increase has been contributed to several factors: 1) the rising demand of crude oil throughout the world 2) the tight inventories because of the belief that supplies are going to run low 3) the current turmoil that exists in the area and 4) heating demands of the abnormally cold winter. These factors have already raised the prices of diesel fuel, jet fuel, and home heating oil. This is of major concern to truckers, airlines, and home heating oil companies. As a result of these price increases, airline ticket prices will also increase. These are just a few of the elements that effect prices, but none of them have the power to greatly change the price that exist at the pumps. The demand of crude oil is always cyclical. The United States demands more gasoline in spring and summer months than in the fall or winter, due to people driving more. The current trend in vehicles has moved to larger sport utility vehicles from small ec...
