| Have you ever noticed at the gas station that oil prices | | | | oil to that country. |
| have become so unpredictable, you never know what | | | | 2. Over the past few months, the investment of finding |
| price it would be in the next few weeks? It has just | | | | new oil fields has gone down due to the rapid drop of |
| been over a year when the oil barrel price on the | | | | oil prices. Therefore, if there is an increase in demand |
| futures market was more than $100. Now, the oil price | | | | for oil in the future, the oil companies will have |
| is hovering around $70. | | | | insufficient oil and will result in an increase of price. |
| Here are a couple of reasons why oil prices are | | | | 3. The recession has reduced the demand for oil. |
| volatile: | | | | During these hard times, consumers will be reluctant to |
| 1. Most of the oil is supplied from unpredictable and | | | | drive their car more than they have to. They will only |
| unstable foreign countries. Venezuela provides a lot of | | | | use cars if they are going to work or pick up groceries |
| oil to the United States. Over the past few years, the | | | | from the supermarket. |
| government of Venezuela has taken over the private | | | | 4. Investment in other alternative energy has also |
| oil industry and therefore controlling the amount of oil in | | | | made the oil prices unpredictable. Most countries now |
| the world. If the Venuzuala government is not happy | | | | focus on reduce their need for oil and relying on |
| with a policy of its neighbor, it can reduce the supply of | | | | alternative energy such as solar power. |