Many people have a lot of questions about Why is the price of oil going up and the price of oil? Or is there actually an organization or someone who can control it? Thai oil price structure Is it higher and more expensive for your own benefit? Today, P Whale wants to explain. Let me tell you that there are many factors. And if you’ve read to the end, you’ll have to understand the point. Why is the price of oil going up and the price of oil? definitely going up and down.
There are many factors that can cause the price of oil going up and down. First, the price of oil has been very volatile in recent years, with high peaks and low valleys. Recently, there have been some players who try to manipulate the market by trading oil futures through Wall Street banks on a large scale, which is a way for them to trigger artificial
Factors Affecting The Rise And Fall Of Oil Prices
The first factor is the state of the world economy. The relationship of the world economy is consistent with oil prices. Because if the global economy grows, the demand for oil will increase. That’s why the price of oil increases accordingly.
The second factor is the production capacity of oil producers and refineries . As a result, oil prices will increase, for example, the recovery situation from COVID-19 will increase oil demand. But the production can not be produced according to demand. Therefore, the price of oil at that time was more expensive. But at the same time, if the demand is less than the production capacity. or if the oil producer increases the production rate As a result, there is an increase in the amount of oil in the market, resulting in a decline in oil prices as well.
The third factor is the season and climate. Because each season has different needs for oil, for example, in winter, it takes energy to warm the house. especially in Europe and North America. at very low temperatures As a result, the demand for more oil will make the oil more expensive and more expensive in the summer. or another season
The fourth factor is geographical factors, such as the unrest in the current news of oil-producing countries such as Russia and Ukraine. It will cause obstacles in the transportation of oil to the market and cause the oil price to rise there.
The fifth factor is the exchange rate. Because if there is an appreciation or weakening of the base currency with the local currency that trades oil. It will cause the cost of trading oil to change as well.
The sixth factor contributing to higher or lower prices of oil is renewable energy production technology. Because if renewable energy technology produces enough fuel for oil use. It will cause oil demand to drop and the price of oil will go down.
In addition, before comparing the price of retail oil in our home and abroad We should understand the cost. Pricing is not the same Whether it is the oil price structure that consists of refining fees, taxes, fund fees, various administrative fees or issues of oil quality, for example, Thai oil has set a minimum quality standard of 4 euros, which helps to reduce emissions well. then It would result in higher costs than oil in neighboring countries that set a minimum of just 2 euros, for example.
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