Why Aren’t Oil Prices Higher? (Level 1)

A war in Iran recently closed a very important water route for oil ships. Usually, 20 million barrels of oil pass through this path every day. Experts thought oil prices would go up very high. But two months later, the price of oil is still around $100. This is much lower than people expected. Why are prices not crazy high? First, some countries found other ways to move their oil using pipes on land. Second, a few ships are still getting through the water route. Third, the world had a lot of extra oil saved up. We are using those savings now. Fourth, China is buying less oil than before. Finally, the world is learning to use less oil. People are using other types of energy instead. The global economy is strong and has found ways to adapt to this big problem.