Why Do Oil Prices Change?
Oil is a commodity. Being a natural resource with limited supply, the price of oil depends on the market and how much of it is available at a given time. But that also means that nearly any disruption in the market—from supply-chain issues to geopolitics—can cause the price of oil to change.
The market isn’t as simple as one merchant increasing their prices either. It’s a complex network with a variety of factors that can drive prices up or down. At the height of the pandemic, the majority of the increased costs were due to trade and supply chain restrictions and labor shortages; however, those aren’t the only factors. For example, the United States’ current levels of inflation also factor into recent oil costs.