Domestic oil prices faced a five-day losing streak this year. What are the factors that affect the decline in oil prices?

The decline in oil prices is influenced by many factors. Domestic oil prices ushered in five consecutive declines during the year, and many car owners were very happy. While the oil price has fallen, it has also caused people to speculate on the factors of the oil price decline. The market has a great influence on oil prices. The market's expectation of slowing energy demand led to a drop in oil prices, and international crude oil futures fluctuated downward. Coupled with the impact of the international situation, the price of crude oil has been very worrying.

1. The decline in oil prices is affected by supply. When supply exceeds demand, oil prices will fall.

The relationship between market supply and demand has a great influence on the rise and fall of oil prices. The reason for the decline in international crude oil prices may be the decrease in international crude oil demand, and the rise and fall of the economy will also affect oil prices. Due to inflation and epidemic, countries are busy dealing with their own energy crisis, and the oil industry is no longer so prosperous, which will also lead to the decline of oil prices.

2. Extreme high temperature weather, as well as the impact of inflation, led to a drop in oil prices.

The drop in oil prices is related to Russia's closure of natural gas pipelines. Russia's closure of pipelines has made many countries in Europe nervous, further aggravating the energy shortage in Europe. Germany is very afraid that Russia will cut off the gas supply. Therefore, the vigilance against crude oil has been relaxed, resulting in the demand for crude oil is no longer so great, and it is also related to the possible return of Iranian crude oil to the international crude oil market.

3. The decline in oil prices is also related to the economic recession and the pessimistic expectation of the decline in international crude oil demand.

The oil price between London and new york fell to its lowest level since the conflict between Russia and Ukraine. If the demand for crude oil continues to decline, the supply side will increase, leading to a greater probability of crude oil price shocks. However, falling also means rising. The drop in oil prices is also related to the release of strategic oil reserves by the United States. There are still many uncertainties about future oil prices. Besides, there are many other reasons.