Crude oil prices and factors affecting pricing

Do you want straightforward crude oil prices? You’ve come to the right place. Here we display up-to-date crude oil prices with easy-to-read charts for the busy person.

Brent crude oil price chart:

Factors affecting crude oil prices

What drives crude oil prices?

There are several factors that affect crude oil pricing (reference 1):

1. Supply
On the supply side, both current conditions and future expectations for the following will impact crude oil prices:

  • Supply capacity
  • Geopolitical events
  • Weather
  • Energy prices

2. Demand
As far as demand is concerned, again not only current conditions but also future expectations for the following will affect the price of crude oil:

  • Economic growth
  • Transport of goods
  • Transport of people
  • Industrial production
  • Weather
  • Energy prices
  • Innovation in energy-using equipment

3. Balancing

  • Levels of physical inventories

4. Market behavior
Besides the supply and demand for crude oil, the behavior of the markets will come into play as a factor affecting crude oil prices. These various market factors are:

  • Currency exchange rates
  • Interest rates
  • Pricing of energy in different financial tools: spot prices; futures; options; spreads and swaps.
  • Prices of other commodities

Chart: How crude oil prices today are doing in comparison to commodities:

Cited sources:

1. U.S. Energy Information Administration What Drives Crude Oil Prices? December 2015, EIA website