Top 10 Factors That May Affect Oil Futures Prices
1. The Middle East Political Climate- The price of oil futures will be affected by the political climate and unrest in the Middle East. A large amount of oil around the globe comes from this area of the world, and political instability can affect the prices.
2. Lengthy Disruptions In Supply- Whether the investment vehicle is penny oil stocks or futures in this sector, any lengthy disruptions in the global oil supply can impact future prices and cost predictions.
3. Domestic Oil Production Levels- The level of domestic oil production affects the amount of oil that must be imported, and this in turn affects the price and predicted futures.
4. Economic Conditions- Oil futures can be affected by economic conditions. Recessions and other economic difficulties can cause futures for oil to increase.
5. New Regulations- New regulations, rules, and laws can affect prices, and even the best oil stocks to buy right now could end up a poor investment if regulations are passed that affect the business model of the company.
6. A Drop in Demand- Any future prices and crude oil stock prices can be affected by a drop in demand. When demand for oil drops then there is typically a drop in the predictions for future prices as well.
7. New Technologies- Oil futures can be affected by new technologies, which in turn can reduce the need for oil and cause supply to exceed demand.
8. Hybrid Vehicle Production- Hybrid vehicle production can affect the futures predictions and oil stock prices and futures. If a large number of these vehicles are purchased by consumers then this factor could affect the supply and demand equation.
9. OPEC Decisions- OPEC decisions will normally have an effect on oil futures, because this group determines the production and export rate for oil produced in the Middle East.
10. Natural Disasters- Natural disasters can impact stock market investing results, and the futures prices for oil.