What Determines The Price of Oil?
So what actually determines the price of oil?
Supply and demand.
But beyond that, we're going break down what the core factors are influencing supply and demand.
And furthermore, we're going to explain to you why negatives things - like an attack on an oil plant - is actually a near-term positive for oil prices.
Remember economics 101?
Did you fail that class?
When there's more supply of a good than demand, price will fall.
Buyers have leverage.
If supplier 'X' sells at $10, supplier 'Y,' eager to compete for sales with X, will sell at maybe $9.
There are only a few buyers and many suppliers, after all.
When there's higher demand than supply for a good, the sellers have leverage.
Buyers are competing with each other for purchases, so buyer X is willing to pay a higher price to elbow buyer Y out of the way.
Ned to see more to fully understand?
Watch the rest of the video above.
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