Brent Crude Oil Prices - 10 Year Daily Chart
Introduction
Oil prices have always been a subject of interest for traders, investors, and governments. Brent crude oil, which is one of the major benchmarks for oil prices, has been fluctuating for the last decade. In this article, we will delve into the 10-year daily chart of Brent crude oil prices.
What is Brent Crude Oil?
Brent crude oil is a type of crude oil that is extracted from the North Sea. It is a light, sweet crude oil that is used as a benchmark for oil prices worldwide. Brent crude oil is traded on the Intercontinental Exchange (ICE) in London.
Factors Affecting Brent Crude Oil Prices
There are several factors that affect the price of Brent crude oil. These include:
- Supply and demand: If the supply of Brent crude oil is low and the demand is high, the price will increase, and vice versa.
- Geopolitical tensions: Political tensions in oil-producing countries can affect the supply of Brent crude oil, thereby affecting the price.
- Weather conditions: Natural disasters such as hurricanes can disrupt the production and supply of Brent crude oil, leading to a rise in prices.
- Exchange rates: The value of the US dollar can affect the price of Brent crude oil, as it is traded in US dollars.
10-Year Daily Chart of Brent Crude Oil Prices
The 10-year daily chart of Brent crude oil prices shows the fluctuations in prices over the last decade. In 2011, the price of Brent crude oil reached its peak at $126 per barrel. However, in 2016, the price dropped to as low as $27 per barrel.
2011-2014: The Peak Years
Between 2011 and 2014, the price of Brent crude oil remained high, with an average price of $104 per barrel. This was due to the high demand for oil from emerging economies like China and India. Additionally, the political instability in oil-producing countries like Libya and Syria disrupted the supply of oil, leading to a rise in prices.
2014-2016: The Price Crash
In 2014, the price of Brent crude oil started to decline, and by 2016, it had dropped to as low as $27 per barrel. This was due to the oversupply of oil in the market, mainly from the US shale oil production. Additionally, the weakening global economy led to a decrease in demand for oil.
2016-2018: The Recovery Period
Between 2016 and 2018, the price of Brent crude oil started to recover, reaching an average of $54 per barrel. This was due to the agreement between OPEC and non-OPEC countries to cut oil production, thereby reducing the oversupply of oil in the market.
2018-2021: The Volatile Years
Between 2018 and 2021, the price of Brent crude oil has been volatile, fluctuating between $50 and $80 per barrel. This was due to the ongoing trade tensions between the US and China, the COVID-19 pandemic, and the oversupply of oil in the market.
Conclusion
The 10-year daily chart of Brent crude oil prices shows the fluctuations in prices over the last decade. The price of Brent crude oil is affected by several factors, including supply and demand, geopolitical tensions, weather conditions, and exchange rates. Understanding these factors can help traders and investors make informed decisions when trading Brent crude oil.