![]() New sources can exert a downward force on oil prices, even in times of heavy demand.Įxtraction costs are typically higher for new resources, meaning these oils are only competitive in lower-supply, high-price environments. New Resourcesįrom time to time new oil resources come online - like Canadian oil sands or US crude oil from oil shale - these add to the global supply. However, the global pool of oil and the ease with which oil moves around the world levels some of these price pressures, and no one oil producer to completely dominate the world market. ![]() The other main factors that affect oil prices include: Supply and DemandĪs with all commodities, oil prices are driven by supply and demand.
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