Economics of Oil

The economics of oil involves how oil is produced, traded, and consumed globally. Oil prices fluctuate based on supply and demand, geopolitical events, and market speculations. Countries rich in oil (like Saudi Arabia) can influence prices by adjusting production levels. High oil prices can boost economies reliant on oil exports but increase costs for consumers and businesses. Conversely, low prices may benefit consumers but can harm oil-dependent economies. Transition to renewable energy is also influencing oil economics, as nations seek sustainable alternatives while balancing their economic interests. The oil market is complex and interconnected with many global factors.