The factors affecting crude oil prices are generally divided into three groups: Macroeconomic factors Supply: includes raw oil resources that can be physically extracted from land or sea, and oil reserves which consist of a daily, weekly or monthly amount of oil barrels that can be produced at a price that is financially beneficial.
Demand: reliance on oil supplies and by-products for maintaining growth in global economy, and the adoption of alternative energy sources such as wind, hydro-electric and solar energy. Relations between major players in oil markets Production agreements between leading producers of petroleum concerning how much oil to produce.
Political or economic sanctions imposed on or lifted from oil-exporting countries such as Iran, Venezuela, Qatar or Russia can result in fluctuations in global oil prices, along with the prices of other commodities. Speculations and trading sentiment Trading oil through futures contracts is considered a common form of trading.
Due to the large number of market speculators — central banks, investment banks, financial institutions, brokerage firms, individual investors, day traders, etc.