How Does Here’s What Drives The Price Of Oil | CNBC Work?

Oil is like candy, some people want it, and if they really want it, they’ll pay more for it.

Supply is how much oil there is to give out, like a big jar of candy that’s already opened. Demand is how many people want it, like kids all running to grab candy from the same jar.

At CNBC, they show you what's happening with those two things: supply and demand. If lots of people are asking for oil (high demand) but not enough is being given out (low supply), then the price goes up, just like if only one kid has a big bag of candy and everyone else wants it.

If there’s plenty of oil to go around (high supply) but not many people want it (low demand), the price drops, like when you have too much candy and no one cares.

Sometimes, news about things like wars or new machines that use less oil can change how much people want it. That's what makes the price of oil go up or down, just like how the number of kids wanting candy changes how fast the jar gets empty. Oil is like candy, some people want it, and if they really want it, they’ll pay more for it.

Supply is how much oil there is to give out, like a big jar of candy that’s already opened. Demand is how many people want it, like kids all running to grab candy from the same jar.

At CNBC, they show you what's happening with those two things: supply and demand. If lots of people are asking for oil (high demand) but not enough is being given out (low supply), then the price goes up, just like if only one kid has a big bag of candy and everyone else wants it.

If there’s plenty of oil to go around (high supply) but not many people want it (low demand), the price drops, like when you have too much candy and no one cares.

Sometimes, news about things like wars or new machines that use less oil can change how much people want it. That's what makes the price of oil go up or down, just like how the number of kids wanting candy changes how fast the jar gets empty.