The factors controlling oil prices

The factors controlling oil prices



Petroleum is a term derived from the English word (Petroleum), and it is known in Arabic as oil, or black gold, which is one of the most important sources of energy, which is used in many matters and various fields, especially the operation of vehicles of all kinds, and machinery in large factories. Also known as a dense chemical liquid, the color is black, and it can easily ignite when it is present among the factors that allow it to ignite, and is used in many industries as a primary or secondary source, and produces thousands of barrels of oil on a daily basis, to cover all the daily needs of oil around the world . The importance of petroleum Petroleum is of great importance in human life, due to its main role in many public areas. Its importance is summarized on the following points: One of the main energy sources, meaning that it is one of the most important sources that countries need to obtain energy, especially in industrial places that depend on large quantities of oil to operate it. It is one of the basics of daily life, meaning that almost all of the world's population depends on petroleum products for many daily uses, such as: cooking, fueling cars, heating, and others. A means of commercial exchange, that is, the presence of oil contributed to the presence of a commercial and economic sector that directly depends on the trade of petroleum derivatives, which led to a significant impact on the economy of countries, especially those that work to export oil to other countries, and it also contributed to providing There are many job opportunities for individuals in various fields concerned with the petroleum sector. The factors controlling oil prices There are a group of factors that control oil prices in the world, and they are: Oil demand It is considered one of the most important factors controlling oil prices globally, when oil prices rise, demand for it decreases, and vice versa, but in contrast, when oil prices decrease, commercial investments associated with it decrease, such as: oil import operations, or industries that depend on oil derivatives such as plastic industries, Which leads to the impact of the price of oil in the global economic markets. Economic crises It is a group of crises that negatively affect the economy of a particular country, or a group of countries, so debt ratios increase dramatically, and demand for oil decreases with its price or stability, but countries cannot buy enough quantities of it, and are then forced to raise prices locally. In order to be able to reach a close balance between the international price and the local price. Political crises It is a group of crises that usually occur in one country, and more than one country may be affected, and political crises are produced, due to the presence of civil, regional, or international wars, which leads to a negative impact on oil, and these crises usually lead to high oil prices with Increased demand for it by countries. Alternative energy sources It is a group of sources that contribute to providing energy to humans, and it is an alternative to the use of oil, which may affect its prices negatively over time, and this is evident in many modern industries, from which oil is no longer an essential part of it, but rather has a role Secondary in it, and examples of these industries: the invention of electric cars, which depend on electricity as a source of energy, with a small percentage of gasoline (one of the oil derivatives) to help in its operation.


تعليقات