The Fundamentals The Fundamentals Affecting on Affecting on

Crude Oil PricesCrude Oil Prices

Supply and DemandSupply and Demand

Domestic demand and global Domestic demand and global demand both affect on crude oil demand both affect on crude oil price.price.

Over the last decade, emerging Over the last decade, emerging markets like China and India markets like China and India have increased demand for have increased demand for crude oil and so this led many crude oil and so this led many speculators to suggest that speculators to suggest that demand would outpace supply.demand would outpace supply.

On the domestic side, the regular On the domestic side, the regular reports from the EIA on refining reports from the EIA on refining

activity and crude oil supply have activity and crude oil supply have direct impact on crude oil price and direct impact on crude oil price and also crude oil futures price volatility.also crude oil futures price volatility.

Released weekly, EIA reports and Released weekly, EIA reports and API reports are often key API reports are often key

fundamental influences on crude oil fundamental influences on crude oil futures marketsfutures markets. .

OPEC OutputOPEC Output

OPEC - The Organization of the OPEC - The Organization of the Petroleum Exporting Countries.Petroleum Exporting Countries.

From its name, we all can be sure From its name, we all can be sure that its activities will have strong that its activities will have strong

effect on oil market.effect on oil market.

OPEC production levels and OPEC production levels and promises for production can also promises for production can also add volatility to crude oil prices.add volatility to crude oil prices.

Even a scheduled OPEC meeting Even a scheduled OPEC meeting and speculation about increases or and speculation about increases or

cuts to oil production can impact cuts to oil production can impact crude oil futures markets.crude oil futures markets.

WeatherWeather

That sounds strange that weather That sounds strange that weather can affect oil price, but it will.can affect oil price, but it will.

Storms in the Gulf region of the Storms in the Gulf region of the United States as well as the North United States as well as the North

Sea can halt production of crude oil Sea can halt production of crude oil both on drilling platforms as well as both on drilling platforms as well as refineries which may be shut down refineries which may be shut down

anticipating the arrival of a bad anticipating the arrival of a bad storm.storm.

Events like Hurricane Katrina Events like Hurricane Katrina stand as strong examples of how stand as strong examples of how weather may have a direct impact weather may have a direct impact

on crude oil price.on crude oil price.

You have just viewed some You have just viewed some fundamentals that affect on crude fundamentals that affect on crude

oil prices. There are some more but oil prices. There are some more but I can’t list out here for you because I can’t list out here for you because of the limited spaces. Just discover of the limited spaces. Just discover

more from the resource. By the more from the resource. By the way, keep up with the way, keep up with the

oil and other futures market pricesoil and other futures market prices for your investments!for your investments!