What Factors Determine Crude Oil Prices?

Crude oil is a future that executes floating prices. In accordance with international practice, China adopts a "22 + 4%" adjustment mechanism. That is, referring to the changes in international crude oil futures prices in the past month (22 trading days), if the price fluctuates by more than 4%, the domestic refined oil price will rise or fall accordingly. In general, the pricing is determined by the National Development and Reform Commission (NDRC), at which time the media will announce changes in the retail price of gasoline and diesel.

Crude oil prices

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Crude oil is a future that executes floating prices. In accordance with international practice, China adopts a "22 + 4%" adjustment mechanism. That is, referring to the changes in international crude oil futures prices in the past month (22 trading days), if the price fluctuates by more than 4%, the domestic refined oil price will rise or fall accordingly. Generally, pricing is determined by the National Development and Reform Commission (NDRC), and the media will announce changes in the retail price of gasoline and diesel.

International crude oil futures price broke the US $ 100 mark for the first time According to the latest report by Xinhua News Agency, affected by investors concerns about tight crude oil supply and the depreciation of the US dollar, international crude oil futures prices broke the US $ 100 per barrel mark for the first time in history.

International oil prices rose sharply on the first trading day of 2008. At around 12.06 noon on the 2nd Eastern Time, the price of light crude oil futures delivered by the New York Mercantile Exchange in February reached $ 100 per barrel in electronic trading. This price refreshed the 99.29 per barrel created in 2007. The highest international crude oil futures record in the US dollar. A number of factors have led to a surge in international crude oil prices. The situation in Nigeria, a major oil-producing country in Africa, continues to be volatile. Militants attacked the country's main oil-producing region on the 1st, causing many deaths.

The Organization of the Petroleum Exporting Countries (OPEC) warned on the 2nd that by 2024, the organization may not be able to meet the demand of the international crude oil market. In addition, the dollar continued to depreciate against the currencies of major western countries on the day, and international gold and major commodity futures prices continued to rise.

International crude oil prices continued to plummet on January 5, 2015, and fell below the important $ 50 per barrel mark in one fell swoop, once again setting a new low in five and a half years. The soaring dollar and soaring demand for crude oil have once again raised investor concerns.

April crude oil futures prices closed down $ 2.21 on Friday (March 13), a decrease of 4.70%, to $ 44.84 / barrel. This week (the week of March 14) has fallen 9.6%, at least since the last three months The biggest weekly decline was due to persistent oversupply concerns in the market and the US dollar index refreshed its highest level since April 2003 to 100.39.

On December 9, 2015, the price of WTI (United States West Texas Light Crude) crude oil was US $ 37.51 per barrel, a decrease of 0.37% from the previous day. The price of Brent oil in London was US $ 40.26 per barrel, a decrease of 1.15% over the previous day.

As of the sixth working day on December 9, 2015, the average international reference price of crude oil varieties was US $ 40.06 / barrel, with a change rate of -3.61%, and the corresponding reduction of gasoline and diesel was 90-100 yuan / ton. ^[1]

On March 18, 2017, China and Saudi Arabia issued a joint statement "will increase the supply of crude oil to China." ^[2]