Oil consuming countries are divided into Organization of Economic Cooperation and Development (OECD) countries and Non-OECD countries.
OECD Countries includes US, European countries and other advanced countries and constitutes of consuming large share of oil but now a days the consumption growth rate is decreased heavily.
Non-OECD countries includes China, India, Saudi Arabia and all other developing countries whose consumption growth is increasing each year and it constitutes of 40% of market share in crude oil consumption
Factors to analyze:
1.The economic growth of the countries which stimulates the crude oil demand like china, indiaetc
2.Emerging and progress of alternative energy sources like solar power, wind power
3.Progress in the development of electrical vehicles as it seems to be a big alternative for petrol/diesel cars which consumes the by products of crude oil
4.Monitoring the crude oil inventory of various countries and its worth to monitor the crude oil inventory of US released every week.
Oil producing countries are divided into Organization of the Petroleum Exporting Countries(OPEC) and Non-OPEC countries.
OPEC countries produces 40% of oil supplyand it includes countries like Saudi Arabia and other gulf countries and the future supply is decided combinely by all OPEC countries and various factors are considers before fixing the production. OPEC countries generally have low cost of production and it enjoys the ability to fix price.
Non-OPEC countries produces remaining 60% of total oil supply and it consists of countries like North America and regions around Russia but they are usually having high cost of production compared to OPEC countries and so it tracks the production in OPEC countries to decide their production.
1.Geo-political wars and events in oil production countries will impact the production thereby increasing the price.
2.Climatic condition near to the production field.
3.Introduction of new technology which facilitates in further reduction in the cost of production.
4.OPEC forecast on the production is worthy to watch to get the idea on the supply of crude oil
Other factors influencing supply and demand
The crude oil is mostly quoted and traded in US dollar so the movement of the US dollar will causes price changes in crude oil
US Dollar(Appreciation) => Decrease in the crude oil price
US Dollar(Depreciation) => Increase in the crude oil price