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Crude Oil Prices


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Back to investing platform, especially to futures markets, as you see, we will narrow the topic at crude oil futures. Joining into this trading floor, traders or investors need to keep track with changes both commodity futures prices in general and crude oil prices in particular, since markets are interactive to each other. However, because of the limited time, we will first of all check out the oil market. And here, "The Fundamentals Affecting on Changes in Crude Oil Prices."

Crude Oil Prices

  1. 1. The Fundamentals Affecting on Crude Oil Prices
  2. 2. Supply and Demand
  3. 3. Domestic demand and global demand both affect on crude oil price. Over the last decade, emerging markets like China and India have increased demand for crude oil and so this led many speculators to suggest that demand would outpace supply.
  4. 4. On the domestic side, the regular reports from the EIA on refining activity and crude oil supply have direct impact on crude oil price and also crude oil futures price volatility. Released weekly, EIA reports and API reports are often key fundamental influences on crude oil futures markets.
  5. 5. OPEC Output
  6. 6. OPEC - The Organization of the Petroleum Exporting Countries. From its name, we all can be sure that its activities will have strong effect on oil market.
  7. 7. OPEC production levels and promises for production can also add volatility to crude oil prices. Even a scheduled OPEC meeting and speculation about increases or cuts to oil production can impact crude oil futures markets.
  8. 8. Weather
  9. 9. That sounds strange that weather can affect oil price, but it will. Storms in the Gulf region of the United States as well as the North Sea can halt production of crude oil both on drilling platforms as well as refineries which may be shut down anticipating the arrival of a bad storm.
  10. 10. Events like Hurricane Katrina stand as strong examples of how weather may have a direct impact on crude oil price.
  11. 11. You have just viewed some fundamentals that affect on crude oil prices. There are some more but I can’t list out here for you because of the limited spaces. Just discover more from the resource. By the way, keep up with the oil and other futures market prices for your investments!