Why Have Oil Prices Risen So Much So Fast?
Oil prices rise and fall around the following key factors:
Let's examine each factor:
- The global demand for oil
- The global supply of oil
- Political risk
- Investor Demand/Hype
Global economic growth has accelerated significantly since May 2003. The USA and the EU economies have performed well as have China's and India's. Therefore, the demand for oil has risen. However, global economic growth has eased significantly since November 2006 and this has relieved growth pressure on global oil supply.