Price History of Crude Oil Futures

The prices of crude futures have been very unpredictable in the past, like the prices of some other commodities.

Crude oil commodity trading will see price sway in both directions, forward and backward. This may be because of a shortage of crude or an oversupply of the commodity.

When crude oil trading is carried out, awareness is required that the price cycle of the commodity is not for the short term.

The cycle may extend to days or even years. Changes in the demand for the commodity, the supply from OPEC, and the non-supply from OPEC play a crucial role in deciding the trend and hence the price of crude oil.

Geopolitical events and supply and demand for the commodity have seen a lot of price instability.

Trading online makes the progression very transparent and reasonable.

 

An Outlook On the History Of Crude

In the twentieth century, the price of crude was very profoundly regulated.

Production of price control kept it under strict regulation. After World War II, in the United States, crude prices were restricted by the government.

However, if the price had not been restricted, the crude prices would have been much higher.

It was quoted at $28.52 per barrel under regulation, and on the other hand, the average world price was $30.54 per barrel.

The OPEC had kept the crude prices in the $22-$28 price range till March 2000.

The actual crude prices could only exceed $30 per barrel in the case of any turbulence or war.

On the other hand, when it had limited spare capacity, it dumped the price band in 2005.

 

A Long Term Outlook of Crude

The industries upstream of the crude industry ought to be able to profit below $25 half of the time.

The risers in the interest rate of oil futures and OPEC regulations will always significantly impact crude oil future prices.

Crude is a very prevalently traded commodity in the Indian commodity exchange.

Understanding the price history of crude and the events that impact the price of crude can let you make a good trading decision when trading crude futures.