Southern MD Fuel Oil Company Crude Oil Prices History
Southern MDFuel Oil Company
What Affects Crude Oil Prices History
A crude oil prices history is a tabulation of historical crude oil prices. It shows how crude oil prices have varied over time. Economists use oil price histories in their financial forecasts. Investors and brokers utilize crude oil histories to estimate future oil prices. Oil companies certainly keep track of their own historical crude oil prices. The price of crude oil is affected by many factors, some of which you might be surprising.
The supply of crude oil is a major factor in crude oil price history. Current thinking indicates that there is a fixed amount of crude oil in the ground. Therefore it is more appropriate to discuss the amount of crude oil made available by oil producing nations. There have been times in history when some of the oil producing nations have decreased the amount of oil they supply on purpose. These actions are often in protest to an undesirable action or policy of another nation or group of nations. During these oil embargoes, the crude oil price historically rises.
Political unrest, tension, and wars affect the history of crude oil prices. This is especially true when major oil producing nations are involved in the disturbances. Sympathetic nations might voluntarily decrease their oil output in support of a country that may have been wronged in some way. Conflicts may disable or disrupt the ability of a nation to produce its maximum amount of oil. Elections of unpopular leaders in an oil producing country, or the threat of a coup in such countries, can also affect historical crude oil prices.
Weather is also involved in the history of crude oil prices. Winters that are colder than normal increase the demand for crude oil to be converted into heating oil. As the demand increases, so does the crude oil price. Alternately, a forecast of a warm winter can cause historical oil prices to drop, because the demand has decreased. Less heating oil will be needed, so history shows that the price will likely decrease.
The oil commodity markets around the world often take their cues from each other. A price increase on the other side of the world might affect the historically low crude oil prices in a country on the other side. Many different factors from wind to war have affected the crude oil prices history.
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