Fundamental Drivers of the Oil Market

The oil market is driven by three chief components: supply, demand, and refining capabilities. Major suppliers include the US and Middle Eastern countries, particularly in the context of OPEC's influence on global prices. Notably, the demand growth in the Asia-Pacific region, especially from China and India, has significantly affected market dynamics. Furthermore, refining contributes to the market complexity, as the type of crude oil available can impact the quality of refined products; for instance, European refineries adjusting to a lighter crude from the US due to sanctions on Russian imports illustrates this interplay.