Energy & Financial Markets

By Author: shaniul alam
Total Articles: 3
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WHAT DRIVES CRUDE OIL PRICE?
An analysis of 7 factors that influence oil markets, with chart data updated monthly and quarterly Seven key factors influencing oil markets. Analytical conditioning between each factor of influence and the prices of crude oil.
As part of its Energy and Financial Markets Initiative, EIA is assessing the various factors that may influence oil price — physical market factors as well as those related to trading and financial markets.
"EIA's traditional coverage of physical fundamentals such as energy consumption, production, inventories, spare production capacity, and geopolitical risks continues to be essential. EIA is also assessing other influences, such as futures market trading activity, commodity investment, exchange rates, and equity markets, as it seeks to fully assess energy price movements."
Read more about What Drives Crude Oil Price?
The petroleum price as quoted in news usually refers to the spot price per barrel (159 liters) of either WTI/light crude (traded ...
... on the New York Mercantile Exchange (NYMEX) for delivery at Cushing, Oklahoma) or of Brent (as traded on the Intercontinental Exchange - ICE, into which the International Petroleum Exchange has been incorporated) for delivery at Sullom Voe).
The price of oil per barrel of crude depends first on its grade, determined by its specific gravity or API and its sulphur content (other factors may interven), and by its location. Other benchmarks include Dubai, Tapis, and the OPEC basket. The Energy Information Administration (EIA) uses the imported refiner acquisition cost, the weighted average cost of all oil imported into the US, as its "world oil price".
Some decades ago, the price of oil were really low, and people didn't ask themselves if they take advantage of the different materials gained from this natural element in a useful way or not. In the 60's, crude oil had a price of $2-5. The black gold meant the future of the industry. The machinery, weapons and chemical industry developed as fast as never before.
But today even everyday citizens and school kids are confronted with the question about how to use crude the best. They know, what kind of products can be gained from crude and for what can they be used. However, a lot of us live with that optimistic dream of using renewable energy someday, to protect and save our environment and the future of the planet. But all these people do not realise or do not want to know the fact that today's industry is actually based on this source of energy. A big factory or industrial plant could not even work with solar or wind energy, because we do not have that technology to gain such a great density of power as from oil or carbon. Just take a look in our life.