Why oil price fall or increase?

Oil price was 147$/barrel but now its 52$ in only 6 months span,Why is it so even oil consumer and producers are same across the globe,there is no break through in alternative of oil.Then WHY oil price fall?Why oil price fall or increase?
because Jorge Bush-tard is leaving office in a few months thankfully, that's why. ';Drill, baby,drill';!Why oil price fall or increase?
The people who control the oil industry have what is known as a monopoly (literally one in the place of many) and so they can ask any price that people will pay. The price lowered because they realized that enough people would be unable to pay their prices and they want more people to buy more things. an example. You have a limited amount of money and you need to fill your tank with gas. Lets say that there are two gas stations of the same company that have different prices. you will choose the one with the lower price because it is lower, but the fact that you chose it and that you bought a full tank rather than a half tank, the company gains profit by giving you the choice and tainting your vision.
Much like the price of anything, price goes up and down with demand. The global economy is slowing down, so there is less goods being transported, thus oil isn't as expensive. Also, much of the reason before was speculators were buying into oil, artificially raising the oil price, and then selling on to try and make a quick profit. That isn't happening now
I think it's fallen for 3 reasons that all work in the same direction.





1. Demand has been reduced do to a economic contraction but OPEC has met twice now to cut production, so reduced demand should have a more minimal effect on the price due to the production cuts.





2. Stronger dollar relative to other currencies due their own market instability has actually raised our purchasing power. (strange but true, the dollar has been doing well through the crisis even though we've created more money and increased it's velocity.)





3. With the credit crunch the market speculators have less money to try and play the middle man game with. Essentially, their are people who buy and sell commodities without ever actually buying or selling the commodity itself; they only trade paper sales. These people artificially inflate the commodities market and drive up the price (and make money in the middle). If they're having money constraints; they can't play the middle man game.





Just my two cents.

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