Oil Pricing

Oil pricing is determined mainly by supply and demand dynamics. When global demand for oil increases or supply decreases—due to geopolitical events, production cuts, or natural disasters—prices tend to rise. Conversely, if demand drops or supply exceeds demand, prices fall. Other factors influencing oil prices include production costs, currency exchange rates, technological advances, and market speculation. Oil prices are typically quoted as benchmarks like Brent or WTI, reflecting the cost of crude oil on international markets. These prices fluctuate regularly, affecting everything from fuel costs to the broader economy.