Q&A: Volatile oil prices

This BBC article on the price of oil is food because it gives some interesting details on how the price of oil is really decided.

1) Identify the factors that caused the price of oil to increase to over $147 per barrel in July that are mentioned in the 2nd paragraph “Why did oil prices soar to such high levels?”


2) Identify the factors that caused the price of oil to fall more than $100 per barrel since July that are mentioned in the 3rd paragraph “So what made it fall again so quickly?”

3) Look at the 4th paragraph “That all sounds pretty simple then “ and explain what other factors have an effect on the price of oil.

4) Explain why is oil different from other commodities? – look at paragraph 5 “But other than that it's just like any other commodity?”

5) Look at the 6th paragraph “So what part do speculators have to play in all this?” to explain the effect that speculators have on the price of oil

7) Finally read the 7th paragraph “What sort of factors?” to explain how other factors are often suggested as causes for changes in oil prices.