What are the factors that affect the volatility of crude oil prices
As a strategic commodity, oil is closely intertwined with national strategy, global politics, international relations and national strength. In many countries the oil to a strategic height, have taken various measures, through political, economic and military means to compete for oil resources and for the establishment of a large-scale strategic oil reserve oil price control, which in turn further confirmed the strategic nature of the huge oil contained.
What are the factors that affect the volatility of spot crude oil prices? 1 internal causes (1) crude oil scarcity of crude oil is a kind of scarce energy, absolute shortage in the process of human long-term consumption of crude oil, one day will be consumed, there are statistics, the current global crude oil inventories for 60 years. In that year, more spending means less consumption in the future, the current consumption of scarce resources and give up the opportunity cost of future consumption is known as user costs. Different from the general commodity, the price of oil includes not only the marginal cost of exploitation, the marginal social cost, but also the marginal user cost. The increase or decrease of the three kinds of costs leads to the volatility of oil price.
There are too many factors involved in the volatility of crude oil prices, including economic boom, oil inventory, OPEC and IEA market intervention, international capital flows, geopolitics, interest rate and exchange rate changes, as well as new energy.
