What is driving the Oil Price?
Oil price in the future
First and foremost, it is the economic framework conditions for the global economy that are decisive for the fundamental trend direction. These determine the demand for crude oil and gasoline, kerosene or heating oil. On the other hand, it is the offer that affects the courses. The Organization of Petroleum Exporting Countries (OPEC) plays an important role in this. However, countries that do not belong to OPEC, such as Russia, the USA and Norway, are becoming increasingly important in terms of supply and ultimately pricing. The USA in particular has expanded its production immensely in recent years and are now the country with the highest funding of all.
The oil price is a key economic indicator. Oil is the most widely used resource in the world. Numerous armed conflicts were waged over the black gold. The development of the crude oil price is subject to the close observation of many investors, especially since the Corona crisis, who are paying attention to the price development in the coming period. After reading this article, you will know all the developments in this exciting sector. We discuss our oil price expectations for 2021 and beyond. We also go into detail about the oil types Brent and WTI by delving into the history of this commodity and examining the oil price forecast.
March 9, 2020: Oil prices drop by 30%
Monday March 9th could go down in history books as “Black Monday” for the price of oil. The negotiations between Saudi Arabia and Russia had failed.
In the previous months, the oil price had been in dire straits due to the spread of the coronavirus. The world economy was on the decline, and as a result the demand for oil fell significantly. The countries that belong to the oil cartel promised to stabilize or increase the price by cutting oil production. Saudi Arabia in particular is strongly committed to restricting oil production.
Trade Team Forecast
Oil prices as we know them will not remain stable. We assume that it will increase a bit by the end of 2021. But a maximum of 85 dollars. However, we do not expect it to rise any more in 2022. We definitely wouldn’t recommend it as an investment.