The oil, gas, and copper markets depend on the following factors:
– Demand. The higher the demand, the higher the price of these assets. Demand usually rises when global economies grow and falls when global economies slow down (are in recession).
– Extraction of oil, gas, and copper in the world. The greater the extraction levels, the lower the price. In this case, there is more production of these assets and demand may not keep pace with the amount of extracted raw materials. For example, to gauge oil production in the US, you can pay attention to the number of drilling rigs. This data is published every Friday by Baker Hughes, the world’s third largest oil and gas service company. The greater the number of drilling rigs, the more oil that is produced and the lower the price.
– Amount of oil, gas, and copper in the world. If extraction increases but demand does not, this leads to an increase in surplus raw materials. An increase in reserves often leads to reduced prices.