7 Things You Must Know About the Price of Oil

7. Multi-factoral price equation

Oil is one of the world’s most important commodities, and as a result, the nations that control the bulk of the world’s supply exercise a great deal of power over its availability. Globalization and technology advances are changing that but it’s a slow process. The day we see a level playing field on the global oil canvas, it will be a welcome change.

The supply of oil in the world market has an impact on its price, and the fluctuations are passed on to companies and to consumers. Oil prices are also determined by its availability, the quality of the oil, and ease of refining it. Investors have the option of investing in oil futures, which in and of itself influences the price of oil. The oil market is varied and it is complex but understanding these fundamentals allows us all to better understand that there are no “bad guys” here. There is no “us against them”. There are no oil giants and little guys. And there’s certainly no victim position for the consumer who drives a car and uses petroleum products every day.

We all have differing understandings and perspectives and education is the key to building a bridge between those differing perspectives. So understanding how energy works is a personal responsibility that belongs to each of us. That’s important because education and understanding will ultimately lead to collaboration and unity – and that’s what will create a new and sustainable energy future.

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