Here’s What Drives The Price Saudi Arabia's Gigantic Oil Problem, 3 months ago   04:52

President Donald Trump's decision to pull out of the Iran nuclear deal could rattle the oil market, but there's a lot more to it than just that. There are many factors in play when it comes to how prices are determined. Crude is influenced by three major factors: supply, demand and geopolitics - and all three play a big role in how much Americans pay at the pump.
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Here’s What Drives The Price Of Oil | CNBC

Comments 22 Comments

Hans Christian Andersen
I have followed the oil-price the last 4 years, and I am pretty sure that USA is actively manipulating the price, to keep it lower than it should be. I guess this is done by "over-reporting" the fracking out-put, and using the strategic military oil-reserves to simulate newly pumped oil. I suspect this have been done by USA at least for the last 60 months or so, where it have been "pumped" in a few million barrels every month, plus that the actual storage and production numbers also have been manipulated in addition to make a illusion of over-production.
Max Plank
British frigates are escorting oil tankers to England ? add 2% to price of oil if this is necessary
a bansal
2 very important factors shaping the world right now.

(Point 1). Thanks to latest technology, US is the biggest crude producer in the world. In Year 2019, United states crude production is 14 million bpd and by 2020 it will be 15 million bpd and will continue booming with time. 2019 Saudi Arabia production is 10 million bpd and OPEC 2019 crude production is total 30 million bpd and falling. US is energy independence nation since 2018 and in fact relentless rise Of U.S. Oil Exports to the world. OPEC controlling crude prices is history now, No more OPEC plus dirty games. No wonder crude price is steady around $60 since 2018 and prices will keep on falling with the US crude expansion growth, capturing the world crude markets by lowering prices.

(Point 2) by 2020, Battery Cells price will be $100/kWh And by 2025, Battery $50/kWh, so EV cars will be cheaper, way much cheaper than oil cars and of course cheaper electricity fuel (thanks to solar advancement). so whole developed world is rushing for electric cars with ZERO emission (ZERO pollution, ZERO noise, ZERO heat, definitely living in big cities will be healthy again). And EV growth will be exponentially Within next 7 years, crude oil demand will go to junk, the way it was before oil engine arrived. Science is always a winner regardless of circumstances.

Important to realize, India spends 115 billion dollars per year on crude imports and china $239 Billion, Japan $81 billion, south Korea $81 billion and so is rest of the oil thirsty countries. These countries will be having huge dollar savings wasted on crude and so the pollution relief. Prefect example is TESLA....and WORLD EV party has already started....AND US, Germany and China is leading this party right now...Tesla currently has about 1,600 Supercharger stations with more than 13,000 individual chargers worldwide. US total installed 550 EV charging stations end of the year, Thanks to Electrify America, Volkswagen. VW is also planning one of the largest roll outs of all-electric models (30 BEVs, E-Tron model already 200 miles of range per charge), spending 9 billion dollars. China's government has set a target of 4.8 million individual EV charging stations by 2020.

Needless to say Middle east will be in big political and economical mess once crude has no value to the world. For example Today World has no value to venezuela oil(World proven largest oil reserves, OPEC member) and Iran oil(OPEC member). Iranian currency ( 1 USD=143,000 Rial) and Venezuela currency( 1 USD = X million ) are worthless.

You probably cannot guess how worst and disaster it will be for desert dictators countries specially when absolutely not a single drop of underground water anymore, forget the agriculture. And yes Desalination comes on a huge price. And middle east revenues are already crashing, Good example is Dubai DFMGI Index lost 50 percent value trading at 2650 from 5,302(May 2014), so is Dubai property price losses and so is Dubai unemployment growth And outcome will be NO MIDDLE EAST financing support for world terrorism...
The Wandering Mariner
Its all supply and demand.....
And yet oil is not cheap at the pump
Ok so i have a question, fuel, for cars is a commodity, like sugar wheat, barley silver gold. The prices of a commodity is managed so that there are not massive fluctuations on price. Why is it, fuel is allowed to be set higher sell price on a weekend, and why is it illegal to start an independent fuel supplier and sell for your own prices, in order to establish competition, which currently fuel price fixing between biggest suppliers is common practice. If canadian dollar went up to 4$ canadian on a weekend would you not suspect some bulshit was going on behind scenes? we'll think about that. Why is fuel aLLOWED TO BE PRICE MANIPULATED? AND WHY ARE FUEL SELLERS NOT ALLOWED TO SELL AT ANY PRICE THEY WANT?
Alan Simmns
such BS! Why won’t Government put a Cap on fuel prices , and those excuses used to justify price increase are flat out Dumb! Oil companies should be under strict price controls and shutting down refineries should be very limited and not a reason to raise prices Ever! Oh and that Supply and demand excuse , not an acceptable excuse either! Yes I understand it’s a free Market but unless oil co. Are about to go Bankrupt force them to accept a cap!
Carl Welch
Baloney. Prices are controlled by the futures market. How do I know this? As a small oil producer, the price I get is completely determined by the monthly average WTI price. I have no control over prices. Supply and demand are artificial numbers supported by statistics from the IEA and EIA. Furthermore, a market dominated by government oil companies cannot be fairly evaluated because they have no profit motive.
OJ Compton
Hey dumbasses,im paying $1.65 at the pump in Georgia and im loving it. Trump got the last laugh
geopolitics???? -----nonsense !!----n onsense
Ruben Clark
Gas is much higher compared to oil prices than it has been historically. Look in to it. Stop believing everthing they tell you.
King Poot
FAke news
Bull Riedy
Let's go!!! Bring those prices up!!!
Brandon R
This is why we need companies like Tesla more than we know.
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Saudi Arabia's Gigantic Oil Problem, Here’s What Drives The Price 3 months ago   02:42

Saudi Arabia's vast oil wealth has transformed the lives of its citizens - but it needs to turn off the rampant spending if it wants to balance the books. This Bloomberg QuickTake video explores how the kingdom plans to navigate its post-oil future.


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