There are two major factors and eight minor factors that affect the price of crude oil. The two major factors are: first, the supply of crude oil (mainly focusing on the political changes in OPEC member countries regarding the production of crude oil); second, crude oil demand (the largest proportion of demand is from some industrial countries, such as China and India, so the demand for crude oil mainly depends on these aspects). There are also eight small factors: 1. Sudden and major political times (in addition to general commodity attributes, oil also has Strategic material is an attribute, so it is affected by political strength and political situation. 2. Changes in oil inventories (inventories are a buffer between supply and demand. When futures prices are higher than spot prices, commercial inventories will increase, stimulating spot price increases. . On the contrary, it causes the spot price to fall) 3. Market intervention by OPEC and the International Energy Agency (IEA) (they can change the market supply pattern in a short period of time, thus changing people’s expectations for the trend of oil prices) 4. The outflow or inflow of hot money in the international capital market ( When there is a lack of investment opportunities in the global financial market, a large number of people enter the international commodity market, especially the crude oil market, which will inevitably push up the international oil price and make it seriously deviate from the fundamentals.) 5. Exchange rate changes (crude oil price changes and the exchange rate between the US dollar and major international oil prices) There is a negative correlation between exchange rate changes between currencies, and the rise of the US dollar puts pressure on crude oil settled in US dollars. When geopolitical turmoil occurs, crude oil and the US dollar are positively correlated, and the two complement each other.) 6. Abnormal weather (abnormal weather may have an impact on oil. Damage to production facilities leads to supply disruptions, thereby affecting oil prices) 7. Interest rate changes (when interest rates increase, capital investment will be reduced, resulting in a smaller initial mining scale; high interest rates will also increase the capital cost of alternative technologies, resulting in a decrease in the rate of extraction ) 8. Tax policy (increased taxes will reduce the net profit of crude oil extraction, correspondingly reducing the enthusiasm during the extraction period.

And taxes will reduce the return on investment in newly discovered reserves)