What causes oil price fluctuations?

OPEC Influences Prices

OPEC, or Organization of Petroleum Exporting Countries, is the main influence of oil price fluctuations. OPEC is a consortium that, by 2020, will consist of 13 countries: Algeria, Angola, Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, UAE and Venezuela.

Supply and demand effect

Like any commodity, stock or bond, supply and demand rules cause oil prices to fluctuate. Prices fall when demand exceeds supply, and this is true when demand supplies supply. The fall in oil prices in 2014 can be attributed to lower demand for oil in Europe and China, as well as a steady supply of oil from OPEC 4. Decreased from Oil prices have fluctuated since then and as of December 2019.3.3 it is approximately val 60 60 per barrel.

While supply and demand affect oil prices, it is the future of oil that determines oil prices. An oil futures agreement is a binding agreement that gives the buyer the right to purchase a barrel of oil at a fixed price in the future. As stated in the agreement, the buyer and seller of oil are required to complete the transaction on the specified date.

The weight of natural disasters and politics

Natural disasters are another factor that can cause oil prices to fluctuate. For example, when Hurricane Katrina struck South America in 2005, affecting about 20 percent of the U.S. oil supply, it also flooded the Mississippi River in May 2011. The price had risen to 13.5.5. Fluctuations in oil prices

From a global perspective, political instability in the Middle East causes oil prices to fluctuate, as the region is the lion's share of the world's oil supply. For example, the price of oil rose to فی 128 a barrel in July 2008 due to unrest and consumer fears about the wars in both Afghanistan and Iraq in July 2008.