The truth is, crude oil plays a huge role in our daily lives despite the global shift to cleaner energy. Crude oil is everywhere in our global economy. It’s a vital factor in the production of most goods and services.
Changes in oil prices have ripple effects on the entire economy. In the past two years, high oil prices played a major role in driving up inflation all over the world. Understanding the oil markets is important not only for oil traders but also to help other observers understand what’s happening in the economy.
Table of Contents
- What drives oil prices?
- What’s Currently Moving Oil Prices
- Trading Oil – Understanding the Current Climate
What drives oil prices?
Like any other commodity, the price of crude oil is determined by the levels of demand and supply on the global market. However, in reality, it’s actually far more nuanced than that.
Oil prices are often driven by speculation rather than by actual supply and demand levels at any given time. It is not clear how to do this. Supply and demand are the main factors that affect price. The movement in price…