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What is the factor that decides the price of crude oil ?

What is the quality that is key to decide the oil price?

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Question added by Harish Mukundan , Instrumentation Engineer , Bharat Petroleum Corporation Limited Kochi Refinery
Date Posted: 2017/03/01
Malik Ahsan Maqsood
by Malik Ahsan Maqsood , Technical Support Manager , Chevron Lubricants Pakistan

Factors to determine the crude oil price includes:

  • Sulphur Contents
  • Octane Number
  • Composition
  • Depth from which it is explored

Sumit Upadhyay
by Sumit Upadhyay , Operations Engineer , Petrochem Middle East FZE

To begin with in simple terms price is directly linked with supply vs demand. The more supply of crude oil there is in the market compared to its demand the cheaper it will be sold for. Similarly the more demand there is but not much of supply in the market, the price for crude oil will increase. One can see this by over production of oil by Russia, and USA and the introduction of IRANs produced oil into the market by the lifting of sanctions.

 

 

Chaudhry Sajid Elahi
by Chaudhry Sajid Elahi , production Executive , Reckitt benckiser pakistan

On hand Stock Related Safety stock & reordering point On hand Requests Pipe line orders

Sudin Abidin
by Sudin Abidin , Offshore Engineering Manager - Oil & Gas Upstream , SBA Engineering Management Services

depending on the stocks and customers demand

Muhammad Ahsan Zia
by Muhammad Ahsan Zia , Assistant Production Manager , Al Karam paper Mills Pvt Ltd.

There are four key components that determine the price of gasoline. The cost ofcrude oil accounts for 65% of the price of gasoline. The cost of a barrel of crude oilis determined by global supply and demand. If the worldwide demand for crude oilis high, and supply low, oil prices will be high.

Nawaf Alaskari
by Nawaf Alaskari , Senior operator petrochemical (MMA) , Rabigh Refining & Petrochemical Company (Petro Rabigh)

Oil prices are determined by commodities traders who bid on oil futures contracts in the commodities market. These contracts are agreements to buy or sell oil at a specific date in the future for an agreed-upon price.

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