Expectations and fears by the oil producers in order to optimise profits also greatly influence the supply of oil. These producers may hoard the oil, leading to scarcity in supply, and eventually bring about black markets. In addition, due to the unexpected and substantial shift in the supply of oil, the prices are highly unstable and volatile; hence, the producers cannot determine the market price. | Expectations and fears by the oil producers in order to optimise profits also greatly influence the supply of oil. These producers may hoard the oil, leading to scarcity in supply, and eventually bring about black markets. In addition, due to the unexpected and substantial shift in the supply of oil, the prices are highly unstable and volatile; hence, the producers cannot determine the market price. |