7 Key Factors That Drive Oil Price Movements
Understanding these fundamental drivers helps predict market direction and timing:
- OPEC+ Production Decisions: Cartel agreements directly impact global supply
- US Shale Oil Output: American production levels affect worldwide pricing
- Global Economic Growth: GDP expansion drives energy demand
- Currency Fluctuations: Dollar strength inversely correlates with oil prices
- Seasonal Demand Patterns: Winter heating and summer driving seasons
- Refinery Capacity Utilization: Processing bottlenecks create price premiums
- Strategic Reserve Releases: Government stockpile changes impact supply