Crude oil pricing can be confusing

Crude oil pricing can be confusing

 

The factors contributing to the price of crude oil have confused many seasoned observers for years.

Generally, supply and demand have been the most important considerations. For example, when there is an oversupply, prices decline, which increases demand and consumption. When demand increases and the oversupply turns into a shortage, prices increase, resulting in a decline in consumption, and the cycle starts again.

A few weeks ago, OPEC announced that it was going to continue its reduction in oil production by 1.2 million barrels per day.  Some believed that would have caused the price of oil to rise with the anticipation that supplies would be reduced. The opposite happened, and prices fell. Read More…

 

Credit By : Times Record News

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