Why do oil prices rise during turbulence in world affairs?

I always hear news reports that say things like 'Oil prices rise above $100 per barrel amidst uncertainty on Wall Street.' It seems any turbulence in world affairs causes oil prices to increase - why is this?Why do oil prices rise during turbulence in world affairs?
Because the prices of all natural resources and commodities rise during turbulence in world affairs, natural disasters, or during any other event that will impact access to supply. Basic economics of supply and demand.Why do oil prices rise during turbulence in world affairs?
Prices go up when either costs of producing the good go up or the demand for the good goes up. Say there is a crisis of some sort in Saudi Arabia (largest global oil producer) involving violent terrorist activity. Firstly, this might make the costs of extracting oil higher as more protection needs to be given to those who work in oil extraction plants. this extra cost would be passed on to the price of a barrel of oil so that companies can maintain profits .


Secondly, demand will increase for oil as people across the world become unsure how much oil will be available in the future due to the instability and also predict far higher prices. this means they panic-buy and try and build up their oil stocks as much as possible. due to the desperation of those buying oil and the increased quantity of buyers, those whom are selling oil can push the price up.





The reason that it is oil which is most affected by global turbulence is, in short, because it's probably the world's most precious resource. Ok there is diamond and platinum etc but oil is crucial to so much business and so many products that it is the most affected by global turbulence.
industry!





its not only the oil! if you think that oil prices go up because the prices to extract the oil goes up, then the resale value to companies that need oil goes up too, so prices rise!


Consumers cant buy the products as they are too expensive! then the people borrow money to pay and then the banks are dishing out money to those who earn little, eventually they cant pay back the banks and cant buy the products and BANG, no more spending then no more earning!


Oil is in many things oother than cars. Plastic contains oil!
That's the news trying to explain the rise in oil prices. They are being lazy because the oil supply isn't being affected by the turbulence.





Its speculation in the oil price. People think because a butterfly flaps its wings in outer mongolia then they can try and use that incident to drive up the price.
Fat cats making more millions. It's our great capitalist world, which is now beginning to crumble, after years of slavering greed by the rich. They will withstand a depression, their millions are put away lock tight. It is the ordinary working people who will feel the brunt of their wanton greed.
Oil is a valuable commodity, and thus its value represents the unstableness of the markets.


The two things economies invest in during times of economic crisis are gold and oil.
Fear of decreased supply %26amp; increased demand; i.e. profiteering!