The long and short of price volatility Some countries are large enough commodity producers (or consumers) that their actions can materially influence global commodity prices. Saudi Arabia might be an example. But these are certainly the exception. For the most part, commodity producers are price-takers.
They sell a fairly homogeneous product in a highly competitive market, and their actions have little effect on the price that they receive. Unfortunately, for countries like Canada and provinces like Alberta, these prices are typically volatile, and highly uncertain. This volatility is caused, in large part, by the unusual nature of the short-run demand and supply curves associated with most commodity markets.