relationship between supply and demand
Crude oil is also a commodity, so the price of a commodity is determined by the relationship between supply and demand. For example, the demand for crude oil has not changed, but the supply of pellets has decreased, so the price of crude oil will definitely increase accordingly. For example, the demand for crude oil has increased, but the output of crude oil has not changed, so the price of crude oil will also rise. The rise and fall of its price is the same as that of our other commodities.
war
A very important factor affecting the rise and fall of crude oil price is war. Since the outbreak of the Russian-Ukrainian war, the price of crude oil has risen a lot, and now it is very expensive for people in our country to refuel. Because Russia is a big exporter of crude oil, after the war broke out, the price increase of crude oil was really inevitable. And because there is no special crude oil trading agreement between our country and Russia, we can't buy Russian crude oil at a low price like India.
Expectations
From the perspective of crude oil futures, the rise and fall of crude oil prices are determined according to people's expectations. At the beginning of the war, the price of crude oil futures will rise sharply, and soon, the price of crude oil futures will rise beyond people's expectations. Therefore, this price is too high, and funds will soon be smashed, which will lead to a decrease in the price of crude oil futures. There is still a big difference between crude oil futures and crude oil spot, and their prices are completely different.