Crude Oil Market Outlook Darkened by Debt Ceiling Debacle and Recession Risks
from DailyFX - Market News https://ift.tt/6czHK83
The price mark of crude oil is influenced by a number of factors, including:
• Supply and demand:
The most important factor affecting the price of oil is the relationship between supply and demand. When demand for oil is high and supply is low, prices will rise. On the other hand, when demand is low-slung and supply is high, prices will fall.
• Geopolitical events:
Political instability in oil-producing regions can disrupt supply and lead to higher prices. The 2011 civil war in Libya and the Ukraine-Russian led to a sharp increase in oil prices.
• Economic growth:
As economies grow, they consume more oil. This can lead to higher prices, as demand outstrips supply.
• Exchange rates:
The value of the dollar relative to other currencies can also affect the price of oil. When the dollar is weak, oil becomes more expensive for buyers using other currencies.
• Speculation:
Oil prices can also be affected by speculation, which is when investors buy or sell oil futures contracts in the hope of making a profit. When there is a lot of speculation, prices can become more volatile.
Analytic Dave
AnalyticalDave is a personal financial analysis portfolio that captures my Derivatives trading, stock, and investing journey. My portfolio does NOT act as a financial advisor to any community. It is only purposed for journaling my story as a self-taught trader and investor.
