Oil goes up, it goes down. Many people fail to engage, or have negative opinions, because they don’t understand what drives the price of oil, or how it affects the masses. As with all commodities, supply and demand plays a big part in oil prices. Oil peaked in 2008, but the subsequent global downturn saw it experience one of the sharpest drops in history since late 2014.
As of June 6, 2016, WTI Crude is just under $50, and Brent Crude is just over – both up from last week. Forecasters predict it will hit $60 in the new few months. But, no one has a crystal ball.
Everything from war to the weather influences how much we pay for a refill at the pumps. A contraction in the construction sector creates a fall in demand – and in prices, while striking workers in the oil industry can cause prices to shoot up. When the dollar dips oil becomes expensive, and political instability in oil-producing countries goes hand in hand with price volatility.
Jones Oil takes a look at various factors that cause the price of oil to fluctuate.
(Source: Jones Oil / PennEnergy)