Oil price fluctuations

Oil price fluctuations are influenced by supply and demand dynamics, geopolitical events, and economic factors. When global demand for oil rises—due to economic growth or increased transportation needs—prices tend to increase. Conversely, if there’s an oversupply or alternative energy sources gain popularity, prices can drop. Political instability or conflicts in major oil-producing regions can restrict supply, pushing prices higher. Additionally, decisions by oil-producing countries, such as production cuts or increases, directly impact prices. Market expectations, currency fluctuations, and technological advances also play roles. Overall, oil prices change as these interconnected factors impact the balance between how much oil is available and how much people want to buy.