Oil still plays an important role in the global economy despite the continued efforts to reduce its use and to find alternative green energy sources. In the early days,
While much of the early demand for oil was for kerosene and oil lamps, it wasn't until 1901 that the first commercial well capable of mass production was drilled at a site known as Spindletop in southeastern Texas.
While much of the early demand for oil was for kerosene and oil lamps, it wasn't until 1901 that the first commercial well capable of mass production was drilled at a site known as Spindletop in southeastern Texas.
The use of oil in fuels continues to be the primary factor in making it a high-demand commodity around the globe, but how are prices determined?
KEY TAKEAWAYS– Like most commodities, the fundamental driver of oil's price is supply and demand in the market.– The cost of extracting and producing oil is also an important factor.
KEY TAKEAWAYS– Oil markets are composed of speculators who are betting on price moves, and hedgers who are limiting risk in the production or consumption of oil.– Oil supply is controlled somewhat by a cartel of oil-producing nations called OPEC.
KEY TAKEAWAYS– Oil demand is driven by everything from gasoline for cars and airline travel to electrical generation.