Futures Commodity Trading

History Of Crude Trading And Its Future

Historically, crude oil or oil prices in the United States have been affected by a variety of global factors. At the beginning of the 20th century, production of crude oil began to be controlled by the U.S. government, with restrictions on the amount of production and the price for the conservation of this valuable energy source. After World War II, demand for oil could not be met through local production alone, and the U.S. began importing increasing quantities of crude oil. Until the 1972 war between Israel and Syria and Egypt, the world crude oil prices were fairly stable at around $ 3 per barrel. An oil embargo by the major oil producing countries in 1973 led to the first sharp increase in crude prices to $ 12 per barrel. Iran after the 1979 revolution and the Iran-Iraq war, crude oil prices rose to $ 35 per barrel by 1981. However, in 1986, the OPEC cartel, the control of global crude oil prices began to falter as the member countries exceeded their limits of production, lowering prices to around $ 10 per barrel. Prices rose gradually over the next decade, but the Southeast Asian economic crisis of 1998 brought prices down again as demand fell. Prices rose to $ 25 per barrel in late 20th century, but a number of factors, including supply reduction and war, spiraling oil prices was a $ 70 per barrel in 2005. › Continue reading

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