The relationship between supply and demand is the main reason for the rise in oil prices. When global crude oil production can't keep up with demand, that is, when supply exceeds demand, oil prices will rise.
2. US dollar index
There is an inverse correlation between the dollar index and oil price, that is, when the dollar index weakens, funds will flow from the dollar market into the crude oil market, thus stimulating the rise of crude oil prices, thus promoting the rise of oil prices.
3. Economic development
When the economy recovers or develops rapidly, it will increase the consumption and demand of crude oil and stimulate the rise of oil prices.
4. Effects of the war
When there is a war, it will increase the demand for crude oil and affect the production of crude oil, while hedging and funds will flow into the crude oil market, leading to an increase in oil prices.
5. Policy implications
The introduction of relevant policies to reduce or restrict crude oil exports in major crude oil producing areas will lead to an increase in oil prices to some extent.
1960 in September, representatives of Iran, Iraq, Kuwait, Saudi Arabia and Venezuela met in Baghdad and decided to join hands with western oil companies to safeguard oil revenue. On June 4th, 65438, the five countries announced the establishment of the Organization of Petroleum Exporting Countries (OPEC). With the increase of its members, the Organization of Petroleum Exporting Countries has developed into an international oil organization composed of some major oil-producing countries in Asia, Africa and Latin America. The headquarters of OPEC is located in Vienna, Austria. At present, the Organization of Petroleum Exporting Countries aims at ensuring the stability of oil prices in the international oil market by eliminating harmful and unnecessary price fluctuations, ensuring that all member countries can obtain stable oil revenues under any circumstances, and providing sufficient, economical and long-term oil supplies for oil-consuming countries. [3]
Members of the Organization of Petroleum Exporting Countries analyze and predict the current situation and market trends, clarify many basic factors such as economic growth rate and oil supply and demand, and then negotiate what adjustments to make in oil policy. For example, at the previous meeting, the members of the Organization of Petroleum Exporting Countries decided to increase or decrease the overall oil production of the organization, so as to maintain the stability of oil prices and provide stable short-,medium-and even long-term oil supplies for consuming countries.
Summary of commonly used institutions and abbreviations in the international oil market:
1, Organization of Petroleum Exporting Countries: Organization of Petroleum Exporting Countries, founded in 1960, has 12 member countries, and its oil reserves account for 77% of the world's total oil reserves. It is an international organization that has the greatest impact on international oil prices.
2.IEA: The full name is the International Energy Agency, which is an international organization that coordinates and guides international energy work. Founded in 1974 and headquartered in Paris, France.
3.EIA: us energy information administration, a statistical agency under the US Department of Energy, aims to provide accurate and independent judgment, prediction and analysis for crude oil investors.
4.API: api gravity, an American oil industry organization, provides weekly important data on American oil consumption and inventory level, which was established in 19 19.
5.NYMEX: New York Commodity Futures Exchange, which mainly trades energy products. Trading methods are futures and options trading.