Oil prices have now exceeded $119.00 a barrel Tuesday during trading , and is expected to increase beyond $120.00 a barrel . Market analyst seem to think this has something to do with the falling value of U.S. currency against the Euro . I'm not a market analyst or stock broker , and yet i can't help but be a little suspicious about the reasoning for the price hike . The excuse that it's the falling value of the dollar just doesn't convince me , the dollar's value has been dropping steadily for the last 3-to-4 years . Just a couple of years ago oil was selling for around $55.00 a barrel with fears that it could surpass $60.00 . So why this unprecedented increase in the price of crude ? It's very simple supply & demand with an under current of greed . Just last week a Saudi official said he saw no reason to increase production at this time . Saudi Arabia cut back production several months ago . Mexico's oil production slipped by around 7.8% , that's around 2.91 million barrel's a day . Then you have the oil companies in America that haven't built a new refinery since 1980 . This is why oil in the United States cost so much , because the majority of the oil that's imported has to be refined outside the U.S. I try to avoid conspiracy theories but in this case I'll indulge in one . This current state of high gas prices reminds me of what happened in the early to mid 1970's . It was shortly after the Yom Kippur War when OPEC decided to cut back production , and resulted in the gas shortage America suffered . If you'll remember OPEC mainly consist of Arab countries . Because America supported Israel with equipment , those Arab countries voted to cut back production as a way to punish America for its backing of Israel . I believe the same thing is occurring now . With U.S. troops in Iraq for over five years now , this is OPEC's way of saying get out .
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