Oil prices fall on demand cuts despite US-Iran supply risks

Oil is a liquid that powers cars, planes, and lots of machines, so its price matters to people everywhere.

This week the price of oil went up a little bit one day, then fell by more than one dollar the next day.

People who study oil said the world will need less oil in the coming year than they first thought.

That made the price go down.

But the price did not fall even more because ships that carry oil are being attacked in faraway seas.

The attacks are linked to a conflict between the United States and Iran.

Talks to stop the fighting have slowed down, and Iran says there is no ceasefire to extend.

Because of the danger, very few ships are moving through an important waterway called the Strait of Hormuz.

Experts also expect there to be less oil available, which usually makes prices go up.

So the two forces, lower expected demand and worry about supply, pulled the price in different directions.