The oil demand has actually decreased ever since it hit 100 dollars which means that the price was expanding because of china and the olympics. Now that the olympics are over china has stopped stock piling oil so which in effect has made the price drop off to where it should be at. It is as simple as that. Same thing with Potash and MosaicWhat are the factors causing crude oil prices to drop? It looks like it has dropped around 44% since mid July.?
Basically, investors have decided that the usage of petrochemicals will decline dramatically during the next few months. It won't likely drop that significantly. Most of the swing is based on follow the leader. If you think something is going up in value, you buy. If you think something is dropping in value, you sell. Meaning that the market swing is only indirectly representative of the actual changes in supply and demand.What are the factors causing crude oil prices to drop? It looks like it has dropped around 44% since mid July.?
Less global demand for oil. Less demand=lower crude oil price.
Read this you might find it useful, it helped me to forecast oil price for my micro economy class
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