The impact of the US
dollar
Crude oil is quoted in US
dollars, so they have a relatively negative correlation. Generally, the US
dollar will rise and the oil price will fall.
Hedging demand
Any commodity is affected by the
relationship between supply and demand. When the supply of crude oil exceeds
demand, the price of oil will fall. If demand exceeds supply, the price of oil
will rise.
Geopolitical
influence
Crisis, revolution, riots and
even wars in major oil-producing countries in the world will have a major impact
on oil prices.
The impact of
financial investment
The volume of crude oil in the
financial market far exceeds the physical market. The oil price has largely
deviated from the real economy, and the monetary factor has become the dominant
factor. Financial investment has determined the short-term trend of oil prices
to some extent.