Why has the price of oil fallen so sharply recently?

How has the US bail out being passed affected the price of oil?





Why has the price been so volatile lately, have supply and demand really changed that much?Why has the price of oil fallen so sharply recently?
Two things are fueling the fall of oil prices.





1st - The appreciation of the dollar, lots of money running for the safety of t-bills, including money previously used to speculate on oil futures.


2nd - Speculation that future demand will fall. In other words supply and demand has not changed yet, but trades are anticipating the fall in demand.Why has the price of oil fallen so sharply recently?
The Oil market, as well as other commodiites and raw materials used for industrial use, are pricing in a global recession. Basically, demand has been declining the united states all year and now it is beggining to look as if the rest of the world will follow.





Commodiites and crude oil are usually effected by current supply and demand, futures supply %26amp; demand estimates, and global money flows.






because no one can afford to wast gas so demand is going down
No and no. Speculation caused the runup. All bubbles burst.