Crude oil is one of the most important commodities that receive wide attention at the global level due to its importance and prominent role in providing nearly half of the energy consumed in the world in addition to its entry into the manufacture of many chemical products, and it is one of the most traded commodities in the financial markets.
Crude oil is a fossil fuel that originated over millions of years from fossilized plants and animals. Crude oil is extracted from the ground and petroleum companies refine and separate it into various petroleum derivatives, the most important of which is petroleum or gasoline. Crude oil is divided into two types, light and sweet, which is preferred, heavy and sour.
Factors that affect oil prices:
1. OPEC:
It is an organization that includes about 13 members of the major oil-producing countries in the world, and plays an important role in changing prices by raising or lowering their production rates.
2. The US dollar:
The US dollar has an inverse relationship with oil prices. When the dollar falls, oil prices rise, as it is one of the commodities priced in dollars.
3. Technological development:
Which offers alternatives for developing crude oil, such as tar sands and oil shale, and these alternatives are capable of providing fuel during the coming period, so the development in this field will inevitably affect prices.
[banner-group name='bannerforex']4. Climate changes in the world:
The majority of recent research reveals that climate changes are due to harmful emissions from fossil fuels. That is why, over the past few years, many global countries have worked to discover other alternative sources of energy, in addition to developing sustainable energy sources such as fuel cells, ethanol, liquefied natural gas, solar energy, etc. Instead of focusing entirely on the oil.
Despite the efforts made to create and develop new sources of energy, the demand for crude oil is on the rise, and its reserves are still limited.
Fluctuations in oil prices affect the economies of producing and consuming countries as well, as any increases or decreases in prices will directly affect the economies of the producing countries, which will be affected by the decline in prices, while consuming countries benefit from this decline for the benefit of their economy.
In the crude oil trading markets, any trader should know the factors that affect prices and should watch them carefully in order to succeed in this field.
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