Title: What Causes Oil Prices to Fluctuate?
Headings: What Causes Oil Prices to Fluctuate?
What Causes Oil Prices to Fluctuate?
Key Takeaways
OPEC Influences Prices
Supply and Demand Impact
The COVID-19 Demand Shock of 2020
Natural Disasters
Political Instability
Production Costs and Storage
Interest Rate Impact
Article Sources

Content: Economy Economics
What Causes Oil Prices to Fluctuate? FACEBOOK
TWITTER
LINKEDIN
By
Full Bio
Follow
LinkedIn with Background
Linkedin
Follow Twitter
Nick Lioudis is a writer, multimedia professional, consultant, and content manager for Bread. He has also spent 10+ years as a journalist. Learn about our editorial policies
Nick Lioudis
Updated Jan 25, 2021
Table of Contents
Expand
OPEC Influences Prices
Supply and Demand Impact
Natural Disasters, Politics Weigh
Political Instability
Production Costs, Storage Impact
Interest Rate Impact
Oil is a commodity, and as such, it tends to see larger fluctuations in price than more stable investments, such as stocks and bonds. There are several influences on oil prices, a few of which we will outline below. Key Takeaways
Oil prices are influenced by a variety of factors, particularly the decisions about output made by producers like the Organization of Petroleum Exporting Countries (OPEC), independent petro-states like Russia, and private oil-producing firms like ExxonMobil. Like any product, the laws of supply and demand influence prices. Natural disasters that could potentially disrupt production, and political unrest in oil-producing countries all impact pricing. Production costs influence prices, along with storage capacity. Although less impactful, the direction of interest rates can also influence the price of commodities.