Theoretically, there are seven main factors that affect oil prices: the oil output of OPEC countries, the output of non-OPEC countries, production costs, world economic development and world oil consumption level, oil inventory, energy conservation and alternative energy sources. However, in practice, there are many factors that affect oil prices, and the relationship between them is also very complicated.

Historically, oil prices have experienced many changes, and the reasons for violent fluctuations include three aspects: changes in the economic situation have triggered changes in global demand, such as the financial crisis or China's economic take-off; Supply-side changes, such as the decision of OPEC countries dominated by Saudi Arabia to increase or decrease production; And the oil market panic caused by political crises such as the Gulf War and the Iranian nuclear crisis.

This round of international oil bear market began in the middle of 20 14. In June of 20119 USD/barrel, the price has dropped to less than 30 USD. So what is the main reason for this sharp drop in oil prices? All kinds of data show that the current oil market has indeed entered a period of oversupply, and the imbalance between supply and demand is the key factor in the decline of oil prices.

Extended data

The US dollar interest rate hike is adding fuel to the fire.

The Fed's move to raise interest rates as planned pushed the dollar to strengthen, which objectively led to a continuous decline in oil prices. A strong dollar has always been regarded as an important factor behind the weak prices of crude oil and many other commodities, because these commodities are priced in dollars, and the appreciation of the dollar will make them more expensive in front of people who use other currencies.

In addition, commodities can not create any income, which means that the attractiveness of commodities as an investment choice will be greatly reduced in the environment of rising interest rates.

In the 1970s, the United States and Saudi Arabia, the world's largest oil producer, reached an "unshakable" agreement, and the two sides decided to use the US dollar as the sole pricing currency for oil. This agreement was agreed by other members of the Organization of Petroleum Exporting Countries (OPEC).

Since then, the strength of the dollar has been affecting the trend of international oil prices. As the pricing currency of oil, the appreciation of the dollar means that oil is cheaper; The depreciation of the dollar means that oil is becoming more and more expensive.

Refer to Phoenix. Com- what are the factors that lead to the rise and fall of international oil prices? Here is the complete answer.