The major comtributing factor to fluctuations, as least in the US, is due to the fact that oil is traded as a commodity in the futures market. What does that mean? It means that the prices are determined not by actual oil production, oil usage, or even how much oil is being held in reserve, but rather what someone THINKS is going to happen in the oil market. So whenever there's any kind of strife, or threat of production shortfalls, or any other influencing factor, we see the price change based on the opinions of investors. The price of oil, per barrel was recently alomost $50 US, yet the price at the pump was less than it was a few months ago when oil was under $40 US per barrel simply because there is a little more in reserve now than then. I know this probably doesn't apply much to those in other parts of the world, and yes I know that most other parts of the world would love to pay as little as we do in the US for a gallon [ or liter ] of gasoline. By all reports we are nearing the halfway point, where we will have used over half of the oil reserves in the world, probably sometime in the next 10-20 years, depending on the accuracy of estimates of proven oil reserves.
