Crude oil price depends on supply and demand situation, and decides the costs of downstream products

Crude oil price depends on supply and demand situation, and decides the costs of downstream products.

The surge of crude oil mainly roots in the panic caused by expected excessive demand upon the supply suspension of Russian crude oil. Even the resumption of Iran’s crude oil export and the lift of the ban on Venezuela’s oil export could not make up the supply gap. Thus, the supply and demand situation determines the price of crude oil