Global oil market witnesses 4 per cent price drop

WEB DESK: The global market recently witnessed a 4 per cent drop in crude oil prices on Monday.

Currently, US crude oil West Texas Intermediate (WTI) sits at $74 per barrel in London, while trading saw Brent crude oil rise to $78 per barrel.

Read more: Global oil prices rise slightly

Several factors influence oil prices in the global market, including supply and demand, geopolitical tensions, economic conditions, and production levels among oil-producing nations. Supply and demand of oil dictates price shifts, with oversupply leading to price decreases and high demand causing price increases.

Geopolitical tensions, such as conflicts in oil-producing regions or sanctions on major oil exporters, disrupt supply chains and impact prices. Economic conditions such as global growth rates and inflation levels also play a role in oil demand and subsequent price fluctuations.

Production levels among oil-producing nations, often adjusted by groups like Organisation of the Petroleum Exporting Countries (OPEC) and OPEC+, affect oil prices.

Read more: Global oil prices surge to four-week high

Meanwhile, global gas prices also rose by 4 per cent, reaching $2.70 cents per million British thermal units (mmbtu). Gas prices are closely linked to oil prices, as natural gas is often produced alongside oil and is subject to similar supply and demand dynamics.