Changes in oil prices?

i need to know why oil prices fluctuate so dramatically, and why is it that when there is a war taking place, oil prices rise, whats the reason for that.. thank yuuu...





Xx alisha xXChanges in oil prices?
Simple answer is economics. Supply and demand. IF the demand for something outweighs the supply, the price will go up.





During wars etc, fuel is a very important resource...and everyone wants it...so the price goes up.Changes in oil prices?
Law of supply and demand. People who are trying to predict what will happen to the price in the future.





It use to be everytime an Arab country burbs oil prices jump.





Now we are finding out the supply really doesn't change.





Now we have oil well cap ready to go but it will require prices to get up to about 60 bucks a barrel.





Oil companies found out at 3 bucks a gallon people stop buying gas. So the supply is set to not let that happen again.
Oil prices are based on futures and a spot market. Companies try to head off costs and purchase oil ahead of time hoping to get a good deal and protect themselves against high peaks. Some of the high peaks is what you talked about in your question as when a war takes place. Crude oil has to be delivered to consuming nations by tanker and most ship from the middle east. The ports that load enter and exit the area by way of the small area between Africa and the Saudi peninsula or on the other side of the peninsulas and the rest of the middle east. Those shipping lanes are hard to protect. Lots of desserts and places to launch attacks on tankers. Added security for the tankers make the price go up and fear of attack also make the price go up and fear of an oil pipe line or refinery being bombed or rendered useless make the price go up. When we have a mild winter in the northeast where a lot of folks use heating fuel, then the demand is less the price falls. When a war is not disrupting shipping or causing fear that shipping will be interrupted then the price goes down. There are a lot of other factors but this is a fairly accurate and simple base to start your understanding. I hope this helps and is easy to understand. Good luck.