• OIL

    The performance of crude oil in the financial markets is very complex, and its price fluctuations are affected by a variety of factors such as global supply and demand conditions, geopolitics, economic data, monetary policy, etc.

  • Supply and demand

    Supply: The supply of crude oil is affected by the production levels of OPEC (Organization of Petroleum Exporting Countries) and other major oil-producing countries such as Russia and the United States. OPEC and its headquarters control the world by adjusting production. Political freezes, sanctions and conflicts in certain countries (such as those in the Middle East) may reduce oil supply, pushing it up.

    Demand: Global growth, especially industrialization and urbanization in emerging markets such as China and India, will increase the demand for oil. Economic reversal leads to a decline in demand, which in turn leads to a decline in the labor force.

  • Geopolitical risks

    Crude oil prices are extremely sensitive to the severity of geopolitics. Tensions in the Middle East, wars, and policy fluctuations in oil-producing countries can all pose a potential threat to crude oil supplies, causing sharp and drastic increases. Especially in key oil production and transportation areas, such as the Strait of Hormuz, any tensions can lead to spikes.

  • Market Sentiment and Speculation

    Investor sentiment and market expectations also have an impact on crude oil prices. Changes in sentiment in global financial markets, changes in risk aversion and even natural disasters (e.g., hurricanes) can affect the supply chain of crude oil, which in turn can drive volatility in oil prices.

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