Ever since man started trading, supply and demand for a particular product has been the determining factor of its price. Certain attributes of the supply and/or demand of the product affect its price and events beyond the control of the producer/consumer who can often affect its supply and demand, hence it price. Crude Oil is one such product that is of prime importance for the individuals developed countries, but its price history follows shifts in supply and demand due to many variables. It is a complex industry of which quickly became of major importance to the individuals worldwide due to a sporadic development of a heavy reliance on automobiles and energy and other byproducts of oil. It is a relatively new commodity that has increased in importance as the world becomes more and more industrialized.
             Oil has been used ever since ancient times when it was used for primarily medicines and building purposes, but its potential value hadn't been realized until the 19th and 20th centuries. In 1855, Benjamin Sillian, chemistry professor at Yale, discovered that oil distillation could make lubricants and be used as a source of light. He had found a cheaper substitute of whale oil or natural gas for light (Michelouds). Therefore, the demand for natural gas and whale oil decreased and the demand for oil increased because it was a cheaper substitute. The demand for oil increased due to the increasing number of buyers. Therefore, the number of buyers is a demand variable for oil. Since the demand increased more profit seekers realized the benefits they could make get from selling oil therefore they had to find ways to obtain it. It wasn't until 1859, that the first oil well was drilled in the U.S state of Pennsylvania by Edwin Drake("History of Oil Use"). The well was 69 feet deep and produced 15 barrels a day. Within a year business men realized oil's worth and 200 more wells were dug each supplying 1000 ba...