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      Changing oil supply and prices

      Lesson details

      Learning outcome

      I can explain how changing international relations and economic factors can affect oil supply and oil prices.

      Key learning points

      1. Oil production and the price of oil change over time.
      2. Political factors, such as conflicts and changing diplomatic relations, affect oil supply and oil prices.
      3. Economic factors, such as recessions and booms and under and over supply, affect oil supply and oil prices.

      Keywords

      • Supply - the amount of something (e.g. oil) that is available to buy

      • Demand - how much of something (e.g. oil) that people want to buy

      • Diplomatic relations - how well (or badly) countries get along with each other, which can affect trading relationships of supply and demand

      • Recession - a period when economies stop growing temporarily and people spend less

      Common misconception

      If demand for oil decreases then oil prices will always decrease too.

      Although oil prices may decrease if demand decreases, oil-producing countries can increase the price of oil by reducing the amount of oil they supply. This requires oil-producing countries to work together to reduce supply.

      Teacher tip

      Practising interpreting oil price and oil production data is a very useful skill for students to develop, and can usually be linked to current news events.

      Content guidance

      Depiction or discussion of violence or suffering

      Supervision

      Adult supervision recommended

      Licence

      This content is © Oak National Academy Limited (2026), licensed on Open Government Licence version 3.0
      except where otherwise stated. See Oak's terms & conditions
      (Collection 2).

      Lesson video

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      Prior knowledge starter quiz

      6 Questions

      Q1.
      What is non-renewable energy?

      Energy that can be reused many times
      Correct answer: Energy from resources that will eventually run out
      Energy created without releasing carbon
      Energy from the wind or sun

      Q2.
      Which of these is a renewable energy source?

      Correct answer: Solar power
      Coal
      Nuclear power
      Oil

      Q3.
      What does recyclable energy mean?

      Energy you can plug in and use again
      Any kind of renewable energy
      Energy from the sun or wind
      Correct answer: Energy that can be reused, like biofuels or nuclear

      Q4.
      Which of these is an example of recyclable energy?

      Wind
      Oil
      Correct answer: Nuclear power
      Gas

      Q5.
      What is a key environmental impact of energy extraction?

      Correct answer: Landscape scarring
      Reduced population
      Increased tourism
      Higher literacy rates

      Q6.
      Which energy source is most likely to release carbon emissions when used?

      Solar
      Correct answer: Coal
      Tidal
      Geothermal

      4 Questions

      Q1.
      What does the word 'supply' mean in relation to oil?

      The total price of oil globally
      Correct answer: The amount of oil available to buy
      The number of oil companies
      How long oil lasts in storage

      Q2.
      How can a recession affect oil demand?

      Correct answer: It decreases demand because people and industries spend less
      It increases demand due to panic buying
      It has no effect
      It increases oil prices

      Q3.
      Why is it incorrect to assume that if demand falls, oil prices always fall too?

      Because demand doesn’t matter
      Correct answer: Because supply may also fall, keeping prices stable or even increasing
      Because oil is free
      Because oil is not affected by economics

      Q4.
      What is one way countries influence oil prices?

      Changing global time zones
      Voting in the United Nations
      Correct answer: Limiting how much oil they produce
      Selling oil for free

      To help you plan your 11 geography lesson on: Changing oil supply and prices, download all teaching resources for free and adapt to suit your pupils' needs...