Oil prices are mainly affected by the following factors:
A) Supply (quantity oil wells, government policy, OPEC policy)
B) Currency exchange rates (QE)
C) Geopolitical and political factors (the Middle East, Egypt, Russia, United States)
D) Demand (developed countries demand steady demand + emerging countries)
E) Transportation costs
Our Oil Hedging Strategies
London Oil vs New York Oil
Lower average price of oil in London, is Europe and OPEC oil production distribution center, due to the trading volume, generally considered the London oil futures prices below global oil supply indicators, so futures fluctuate fine.
New York oil higher average prices, production, mainly from the Americas, mainly reflecting the state of the US supply of crude oil, with the policy of the US government to control the price and supply of oil dollars, so do fluctuations in the larger New York oil.
New York Oil vs US Dollar
The continuing strength of the dollar directly affects the price of American oil exports (US $ l, oil exports become more expensive); if the dollar rises, it will affect the New York oil price upside. On the contrary, as the dollar fell, oil becomes cheaper disguised York, rising demand.
Oil vs London Business Entity
Falconaire due to Middle East oil business relations, the budget of the oil will continue to rise in future development costs, including machinery, taxation and all operating expenses.
Oil vs Oil Business Stock
Falconaire also operatively associated with the oil Industrial stocks, with oil futures hedging; such as airlines, shipping stocks, oil and other chemical stocks; the higher oil prices, the profitability of these companies will decline, indirectly led to the stock fell. Because the company can receive the latest news from the OPEC oil price in advance, can advance the stock of call or put.