Oil is an essential resource around the world. People use oil in various ways. The world has used oil for many years and will continue to use it as a basic commodity. The use of oil can be traced back to the 1850s. However, when Edwin Drake produced commercially usable quantities of crude oil from a 69-foot well in Pennsylvania in 1859, it marked a new period in which he considered oil a valuable commodity. Oil prices have been inconsistent since 1859. The discovery of more wells significantly lowered oil prices and forced some oil barons out of the industry. However, oil prices have increased over time due to several factors. Many factors determine the supply and demand for oil in the short and long term. First, conflicts occurring around the world affect the supply and demand of oil. For example, the outbreak of civil war in the United States of America caused a surge in oil prices and demand. The effects on the oil market were amplified by the cutting of supplies of turpentine from the South and the introduction of a tax on alcohol, which rose from 20 cents a gallon in 1862 to $2 a gallon in 1865, as opposed to $10 a gallon. gallon. ¢/gallon tax on petroleum products. Assuming a yield of approximately 20 gallons of oil per barrel of crude oil, each 10¢/gallon tax disparity in the cost of the petroleum product was two dollars per barrel, which was a competitive advantage for oil. For this reason, the tax eliminated alcohol as a competitor to oil. As a result, oil production declined after 1862, even as new demand pressures grew. Other conflicts that have affected oil supply and demand include the OPEC embargo that occurred between 1973 and 1974, when Syria and Egypt attacked Israel. Others are the Iraq-Iran war between 1981 and 1986, the first P...... half of the card ...... worth more than two hundred dollars. In conclusion, supply and demand for oil is a complex issue that depends on several factors. Geopolitical affairs are the major issues affecting oil supply and demand. Geopolitical factors include wars, riots and political inconsistencies around the world. Other factors that influence oil supply and demand include market sectors, oil availability, recession, and global GDP. Since 1859, the price of oil has been inconsistent. Despite the fact that oil prices have risen and fallen, there has been a noticeable upward trend in those prices. In most cases, the price drop reaches the previous price level. However, the price increase goes beyond previous prices. This trend has seen oil prices rise over the years. With this in mind, it is clear that by 2020 the real price of oil will exceed $200.