Ultimately, the price of oil is determined by supply and demand. What is special about the oil price is that, in theory, there are several equilibrium prices. This is because a large part of the supply is linked to a state budget. Where normally the supply goes down when the oil price goes down, there are countries that in the past pumped more oil to realise the same yield.
Register or log in to continue reading. Investment Officer is an independent journalism platform for professionals working in the Luxembourg investment industry.
A subscription is free for professionals working at banks and independent asset managers.
