<p>Okay so this is a random question but I would like an answer because I'm a little confused.
I follow the stock market quite a bit.
Ever since the distress in Libya, some oil plants have been shut down. Accounting for 2% of US oil. With this decrease in exportation of oil to US the gas prices have risen up to 3.78 a gallon, I saw it today. Gas prices is a big issue in US right now. So you would think that they raise the price to compensate for their loss in Libya, which is only 2%. But with less oil for companies like chevron, exxon, etc.. I would think, correct me if I'm wrong, that the shares for those companies would not be inclined to raise or at least stay consistent. No, they are rising, not exponentially, but quite a bit since a couple months ago, for example, chevron in November 30, 2010, a share was worth 81$ approximately, today it is worth 107$. I may be looking at this without a different perspective, but I only see this. Can the government, or oil companies, be stimulating our media to give false information, such as plants shutting down. Because in my opinion, and view, it seems it hasn't shut down, and now that the prices are even higher, the companies are getting more revenue, making the stock worth more, eventually bettering the economy but at our expense. Could government be behind this? Am I completely getting this wrong? What's going on?</p>
<p>This is interesting</p>
<p>I dont want to sound like a tool, but one of the most important rules of investing is coming to the realization that all news is priced into the market. There is a constant demand for oil, in this case oil companies could not give a hoot if their supply was cut by 5%, they would raise their prices accordingly. If there is a constant demand for oil, oil companies will remain popular. EXON share price is going up as demand for oil is rising, with the economy rising so will the demand for oil (more cars, goods, houses, ect.). Oil is almost like a levereged etf for the economy, graph XOM with a 10 year graph of the SP500 you will see that they rise and fall at roughly the same time XOM has had a better return for various reasons but a general rule of thumb is that a bullish economy means more oil. As far as Libya goes, it is not really a big deal for Oil company profits as the demand for their oil is so great they can raise prices.</p>
<p>If you would like to get into finance or discuss stocks PM me.</p>
<p>[The</a> Real Reason Gas Prices Are Soaring - DailyFinance](<a href=“Stock Portfolio & Tracker - Yahoo Finance”>Stock Portfolio & Tracker - Yahoo Finance)</p>
<p>Ivygolfer… I’ll pm definitely</p>
<p>Great article “almost there”, thats what I was trying to say, it is not a supply and demand isse it is just the speculation of a greater demand for oil with a lessining supply. This has been priced into oil prices which is resulting in the bump in prices.</p>