Oil economics

Oil economics involves the supply and demand dynamics that determine oil prices. When oil production increases or demand decreases, prices tend to fall; conversely, when supply diminishes or demand rises, prices go up. Factors influencing these include geopolitical stability, technological advances, OPEC policies, and economic growth. Oil is a global commodity, so its price affects and is affected by worldwide economic conditions. Companies, governments, and consumers all respond to price changes, which influence investment in energy, transportation costs, and energy policies. Overall, oil economics is a complex interplay of market forces, geopolitical influences, and technological developments.