Why did the price of Crude Oil drop in the recession?

Can someone explain briefly why the price of Crude Oil dropped during the recession? Just like generally..

2 Responses to “Why did the price of Crude Oil drop in the recession?”

  1. Harlequin Says:

    Supply and demand. During a recession, there is less economic activity and more unemployment. Less economic activity means less use of energy. Business plants that are shut down or only operating at partial capacity use less energy. Unemployed people are more careful about spending money, and therefore use less energy.

    If less energy is used, there is less demand for oil. Less demand means lower prices.

  2. b2fnow Says:

    Generally, EVERYTHING dropped in the last recession. There were no safe havens.

    Think about it, if the whole world is going to Hades in a hand basket, nothing is worth much, ’cause nobody will have jobs or money and nobody can buy anything. If the banks all close, the fed goes bankrupt, nobody has nothing.