Oil is the most important commodity in the global economy because it is a cost input for transportation, manufacturing, and electricity. Oil prices therefore affect inflation, interest rates, and almost every stock sector.
Main Benchmark Prices
| Brent | WTI | |
|---|---|---|
| Origin | Crude oil from the North Sea | US crude oil delivered at Cushing, Oklahoma |
| Main trading venue | ICE (London) | NYMEX (New York) |
| Role | Global benchmark, including for Asia | US benchmark |
Brent is generally priced slightly higher than WTI. In Asia there is also the Dubai/Oman benchmark, which is used to set prices for Middle Eastern oil.
OPEC and OPEC+
- OPEC was founded in 1960 as a group of oil-exporting countries, led by Saudi Arabia.
- OPEC+ is OPEC together with non-member producers, led by Russia, which began cooperating in 2016.
- Meetings to raise or cut production quotas directly affect oil prices.
Factors That Drive Prices
Supply side
- OPEC+ production policy
- US shale oil production
- War, conflict in the Middle East, and sanctions
- Natural disasters affecting production sites or refineries
Demand side
- Global economic growth, especially in China and the US
- Travel seasons and winter
- The long-term shift to renewable energy and electric vehicles
Data the Oil Market Watches
- US crude oil inventories from the US Energy Information Administration (EIA), released every Wednesday
- Rig Count from Baker Hughes, released every Friday
- OPEC+ meetings and statements from Saudi Arabia's energy minister
Impact on Thailand
- Thailand is a net oil importer, so high oil prices raise costs and inflation and put pressure on the trade balance.
- Energy stocks carry a large weight in the SET Index, so oil prices have a significant effect on the Thai stock index. Read Thai stock market.
- A sharp surge in oil prices may force central banks to keep interest rates high, which affects stocks and gold.
For education only, not investment advice. Figures change over time, so check official sources before making decisions.