In this video, we look at all the factors that might influence the price of oil. When recession hit in 2008 and economic activity dropped in many of the world’s leading economies, the price of Brent plummeted from $145 a barrel in July that year to below $40 within a 5 month period. Thereafter China’s demand rose and kept prices high for the following 5 years. To control this rise in prices, an efficient market will bring on extra supply.
When economic activity increases in an economy, demand for oil rises. Without a similar rise in supply, the price will rise.
In this video, we look at all the factors that might influence the price of oil. When recession hit in 2008 and economic activity dropped in many of the world’s leading economies, the price of Brent plummeted from $145 a barrel in July that year to below $40 within a 5 month period. Thereafter China’s demand rose and kept prices high for the following 5 years. To control this rise in prices, an efficient market will bring on extra supply.
When economic activity increases in an economy, demand for oil rises. Without a similar rise in supply, the price will rise.
Find out more: http://www.ig.com/uk/commodities-trading
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