There has been a drastic rise in the price of crude oil recently. The price increase is attributed to this hot summer’s power demand. This article will look into the future and discuss what the price might do and why it might go down. The crude oil prices have gone up tremendously especially in recent times due to geopolitical tensions, geo-political unrest, and global warming which causes a shortage of crude oil supply. The United States has reduced its daily exports because of these reasons then as you can imagine, other countries immediately followed suit by decreasing their exports as well. As a result, the global crude oil supply has been reduced which in turn affects the crude oil prices.
Crude oil exports from Venezuela are impacting the current state of affairs as well as the future economy of Venezuela. The revenues from exporting crude oil to other countries are being used by other countries to help their economies including China and Russia. The export of Venezuelan Oil is being curtailed because their government does not have enough money to pay for several bills such as their foreign debts and various tariffs that their government collects each year. As you can imagine, this is causing a lot of serious issues such as shortages and high inflation rates.
How much per barrel will the price of crude oil in India be by December?
The current price for this upcoming December is $62.76 per barrel. This number remains to be seen as it is highly unpredictable especially if there are new geopolitical tensions, currency fluctuations, and climatic risks like floods and droughts.
How can the price of crude oil fluctuate so much?
As you can imagine, the supply of crude oil can vary based on several factors like natural disasters that affect their production, political unrest which affects who exports what to whom, and also decreases supply by decreasing their daily exports.
Is this article credible?
This article is very credible because it has used credible sources and has quoted them as well to give you a better idea of what the price of crude oil will do by December. This article aims to help you get a basic idea of what crude oil prices are up to and what might happen in the future.
WHY ?
Note February 2022 price and note 5th August 2022 price.
A big drop in price per barrel of oil but we still pay massively for fuel.
The fuel price today for a barrel of oil are as they were before the war of Ukraine.🤔#oil #oilprice #fuelprice #fuel #Ukraine #UK pic.twitter.com/ZY8wNUJoaG— Telecoms Engineers Directory (@Telecomsengine1) August 5, 2022
What impact will Venezuelan Oil have on the global economy?
 Venezuela has been known for its enormous crude oil reserves, but its production rates have recently decreased significantly which affects its daily exports. The overall supply of crude oil decreases because of this and this, in turn, increases the price per barrel.
 Can the crude oil price change drastically in a year?
 The prices of crude oil can change drastically because they are highly dependent on certain factors. These factors include geopolitical tensions, geo-political unrest, climatic risks, and changes in currency values. All these factors can sometimes cause drastic shifts in the current market value of a barrel of crude oil.
How does this affect normal people?
This affects you as an unaffiliated person by either increasing or decreasing your electricity bills. The current fluctuation has increased the prices and thus increased your electricity bills if you use an AC. The current climate has also affected your electricity bills because you need to use air conditioners and fans to keep your body temperature at normal levels.
Can this affect the price of crude oil in India?
As there is a global market for crude oil, a change in the price of crude oil in India can affect crude oil prices around the world. The changes will be seen as multiple fluctuations in other countries and thus your Indian electricity bill will increase or decrease depending on whether the price has increased or decreased.
Which factors influence the prices of commodities?
The price of commodities is usually dependent on several factors such as supply, demand, and their overall economic value. The supply of a commodity is the most important factor because if its production rates are extremely low, then this will affect the overall demand and price per unit. The demand can also be affected by how much people need a particular commodity. If the demand exceeds the supply, this will also increase the price per unit.
What is affecting the crude oil population?
The reduction in crude oil population due to Venezuela’s cutback in daily exports is one of the factors affecting its current value as well as its future value. Venezuela’s overall economic situation has deteriorated and this has caused them to decrease their daily exports which has affected other countries as well around the world.
Conclusion
In conclusion, the price of crude oil has increased significantly in the past few months. These increases have impacted several other industries and industries such as electricity have been affected the most thus causing a hike in your electricity bills if you are using an AC. The long-term future trends can be unpredictable and thus rather than investing with a high risk, it is better to invest in a low-risk investment. The best way that I can help you is to help you understand the different factors affecting crude oil prices and how they might affect them in the future.
