Energy prices are influenced by supply and demand dynamics driven by several key factors:
- OPEC Influence: OPEC countries control a significant share of global oil supply, impacting production and prices.
- Global Economy: Economic growth increases oil demand, driving prices up when demand exceeds supply.
- Storage Costs: Surplus oil during low demand periods incurs storage costs, influencing market trends.
- Alternative Energy: The rise of eco-friendly energy sources affects oil demand and prices.