Answer to Question #15963 in Microeconomics for thanes
factors influencing prices in the global oil market
1) As oil is used in production of a set of consumer goods, from the electric power to food, from fuel to transportations, demand for such goods is reflected on the oil price in the global oil market. 2) During winter months, more electric power is used for heating, than in other months. So, the following factor is seasonality. 3) Many events, such as weather conditions, wars, terrorism, political disorders and solutions of the countries of importers of oil of OPEC about quotas on oil can entail serious changes in the price, growth or falling oil’s prices in the global oil market. 4) Considering that the prices for oil are quoted in the US dollars, many influencing factors of dollar can have impact on the oil market as a whole. The main thing is that the movements of the prices for oil are opposite to dollar movements.