Weekly update

oil price5:25
Source by eia
rig 5:25
Source by Baker Hughes
stock 5:25
Source by eia

 

  1. The oil price increases compared with last week.
  2. The rig count at North America is stable which only adds one more from last  week, while the US crude oil inventory increases 6030 thousand barrels.


The factor that influences oil price:

  1. The Impact of Nature on Oil Production1When the production decreases, and it can’t satisfy the demand, the oil price will go up.
  2.  The Impact of International Event on Oil Consumption2History has demonstrated that that geopolitical crises one major movers of oil prices-one type of the international event. Recently, the Venezuela’ crisis developed and worsen, and the oil production decreases as well, but how this will effect oil price still remains foggy. At may 8th, President Trump announced withdrawal from Iran nuclear agreement, which boost the oil price from $68.83 to $71.76.
  3. The development of alternative energy sources.
  4. The rate of decline in production from major oil producers.
  5. The Petrochemical demand from all over the world.
  6. Developing countries’ demand.The increasing petroleum price is widely considering as increase inflation and slow down economy.
    Reference:
    [1] How Oil Prices Impact the U.S. Economy | Investopedia  https://www.investopedia.com/articles/investing/032515/how-oil-prices-impact-us-economy.asp
    [2] Hurricane Harvey caused U.S. Gulf Coast refinery runs to drop, gasoline prices to rise  https://www.eia.gov/todayinenergy/detail.php?id=32852
    [3] The Role of Oil in the War of Iraq https://history.libraries.wsu.edu/spring2015/2015/01/20/the-war-in-irag/
    [4] What Affects Oil Prices? 3 Critical Factors https://www.thebalance.com/oil-price-history-3306200
    [5] The 2014 plunge in import petroleum prices: What happened? https://www.bls.gov/opub/btn/volume-4/pdf/the-2014-plunge-in-import-petroleum-prices-what-happened.pdf
     [6] What are the possible causes and consequences of higher oil prices on the overall economy? https://www.frbsf.org/education/publications/doctor-econ/2007/november/oil-prices-impact-economy/
    [7] Market Report Series: Oil 2018-Executive Summaryhttps://www.iea.org/Textbase/npsum/oil2018MRSsum.pdf