Oil Market Turbulence Driven by Complex Interplay of Global Forces

Oil market turbulence has been on a wild ride since the start of the Iran conflict. The price swings are due to parties trying to determine what to expect for this crucial commodity.

The oil market combines supply and demand, with major players like oil companies, airlines, chemical companies, and drivers acting in self-interest. Forward contracts and options also play a role in determining prices.

Almost 100 countries produce some oil, with the top ten producers accounting for about 70% of output. The US is the leading producer, followed by other major players like Saudi Arabia, Russia, and China.

The global market has sub-markets within it due to differences in oil types. Brent and West Texas Intermediate are two major variants, with Brent being a heavy oil and WTI being 'sweet' oil.