Supply and Demand Issues

How do changes in supply and demand effect oil prices? In general, prices of crude oil behave in a similar way to most other commodities that have global demand. There are wide price swings during shortages (artificial or real) or oversupply; large swings in the graphs that show price relationships and dramatic and rather unpredictable pricing seemingly out of control from the consumer. Demand, in particularly is a major factor on supply -- with China and India vying for more and more crude oil because of their growing economies, their demand continues to skew the curve. Similarly, many oil rich nations have exhibited supply issues because of war (Iraq) or political problems (Venezuela). Thus, more demand, lower supply means higher prices.

Part 2 -- Which two countries are the largest consumers of petroleum products? The United States (#1) and China (#2).

Part 3 -- Explain what...
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