What is oil price volatility?

Oil price volatility refers to the rapid and significant fluctuations in the price of crude oil over a short period. This volatility can be influenced by various factors, including geopolitical tensions, supply and demand dynamics, economic data, natural disasters, and changes in production levels by major oil-producing countries. High volatility can impact global markets, affecting everything from transportation costs to inflation rates. Investors and businesses closely monitor oil price volatility due to its implications for economic stability and growth.