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it is set by the Organization of the Petroleum Exporting Countries
Well, Its a matter of multiple factors such as :
01- Opec decisions.
02- Geopolitical Circumstances
03- Supply & Demands
04- Speculations
05- Wars & Crisis
Supply and Demand of oil is the significant factor
Apart from following factors big oil importing couriers ........ getting oil in black market less price than from open market (Legal Market )
- Opec decisions.
- Geopolitical Circumstances
- Supply & Demands
- Speculations
- Wars & Crisis
With oil's stature as a high-demand global commodity comes the possibility that major fluctuations in price can have a significant economic impact. The two primary factors that impact the price of oil are:
The concept of supply and demand is fairly straightforward. As demand increases (or supply decreases) the price should go up. As demand decreases (or supply increases) the price should go down. Sound simple?
The price of oil as we know it is actually set in the oil futures market. An oil futures contract is a binding agreement that gives one the right to purchase oil by the barrel at a predefined price on a predefined date in the future. Under a futures contract, both the buyer and the seller are obligated to fulfill their side of the transaction on the specified date.
Additionally, from a historical perspective, there appears to be a possible 29-year (plus or minus one or two years) cycle that governs the behavior of commodity prices in general. Since the beginning of oil's rise as a high-demand commodity in the early 1900s, major peaks in the commodities index have occurred in 1920, 1951 and 1980. Oil peaked with the commodities index in both 1920 and 1980. (Note: there was no real peak in oil in 1951 because it had been moving in a sideways trend since 1948 and continued to do so through 1968.) It is important to note that supply, demand and sentiment take precedence over cycles because cycles are just guidelines, not rules.
It should the market fundementals that are setting world oil prices. However, as oil is a strategic commodoity, geopolitical events and trader and consumer sentiments often have their effect,
Basically, like any other commodity, Oil prices are set by the demand and supply across the globe. However, lots other factors such as geopolitics, OPEC production, natural events and calamities and also oil alternatives affect Oil prices to a great extend. The prices also vary market to market depending on regional specificities.
Oil prices are set by the worldwide demand and supply and also relate to many uncertain factors.
Aside from economic growth and geopolitical risks, other factors, which includes weather events, inventories, exchange rates, investments, spare capacity, OPEC production decisions, and non-OPEC supply growth affects the oil price.
Oil prices is set by Organization of petroleum exporting countries
NYMEX, IPE, SIMEX with the influence of OPEX
the demand & supply on the oil
the OPEC
