The complex and changeable environment has always affected the price of crude oil, and it is much more difficult to analyze the dynamic oil price trend in the trading market. The cost of crude oil depends on many factors that must be considered and it is important to understand how they affect the price. In fact, 99% of people know the factors that affect the supply and demand ratio of crude oil. Forexclub summarizes the relationship between supply and demand, and we will understand it in detail.
The basic factors affecting the crude oil supply and demand ratio are as follows:
1. The output section mainly refers to the changes in the oil output of the main producing countries of the Organization of the Petroleum Exporting Countries and other organizations.
2. Storage This focuses on changes in the Federal Reserve's oil reserves.
3. Whether the oil demand of major oil importing countries in the world has changed, focusing on China, India and European countries.
4. Market sentiment Speculative market sentiment and irresistible forces, such as the sharp drop in oil prices after the release of EIA data in early August 2022.
U.S. inventories rose sharply by 4.467 million barrels after falling by 4.523 million barrels the previous week, according to the EIA. As a result, the interest rate fell by 6.11% in just 6 hours. Traders who did not pay attention to market sentiment in time suffered serious losses due to such a significant change.
The above are the factors that affect the supply and demand ratio of crude oil understood by Forexclub