{"id":22526,"date":"2021-12-30T09:53:27","date_gmt":"2021-12-30T00:53:27","guid":{"rendered":"https:\/\/news.samsungcnt.com\/en\/?p=22526"},"modified":"2024-02-06T10:02:47","modified_gmt":"2024-02-06T01:02:47","slug":"crude-oil-price-roller-coaster-impact","status":"publish","type":"post","link":"https:\/\/news.samsungcnt.com\/en\/features\/trading-investment\/2021-12-crude-oil-price-roller-coaster-impact\/","title":{"rendered":"The crude oil price roller coaster and its impact"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"22526\" class=\"elementor elementor-22526\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-f4ee5d6 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"f4ee5d6\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-9d11cd6\" data-id=\"9d11cd6\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-a6a9caf elementor-widget elementor-widget-image\" data-id=\"a6a9caf\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"940\" height=\"240\" src=\"https:\/\/news.samsungcnt.com\/upload\/2.0\/wp-content\/uploads\/sites\/3\/2021\/12\/DEC-NO2-InfographicCRUDE-OIL7.jpg\" class=\"attachment-full size-full wp-image-28563\" alt=\"\" srcset=\"https:\/\/news.samsungcnt.com\/upload\/2.0\/wp-content\/uploads\/sites\/3\/2021\/12\/DEC-NO2-InfographicCRUDE-OIL7.jpg 940w, https:\/\/news.samsungcnt.com\/upload\/2.0\/wp-content\/uploads\/sites\/3\/2021\/12\/DEC-NO2-InfographicCRUDE-OIL7-300x77.jpg 300w\" sizes=\"(max-width: 940px) 100vw, 940px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b4af4bf elementor-widget elementor-widget-text-editor\" data-id=\"b4af4bf\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>It\u2019s been a rollercoaster ride for international crude oil prices during the COVID-19 pandemic. When you look at a graph of the last five years, you can see that they plummeted in early 2020 at the same time as the pandemic struck.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-350b01f elementor-widget elementor-widget-image\" data-id=\"350b01f\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/news.samsungcnt.com\/wp-content\/uploads\/sites\/3\/2021\/12\/DEC-NO2-InfographicCRUDE-OIL8.jpg\" data-elementor-open-lightbox=\"yes\" data-elementor-lightbox-title=\"Crude Oil Price Fluctuations Over Last 5 years\" data-e-action-hash=\"#elementor-action%3Aaction%3Dlightbox%26settings%3DeyJpZCI6Mjg1NjQsInVybCI6Imh0dHBzOlwvXC9uZXdzLnNhbXN1bmdjbnQuY29tXC91cGxvYWRcLzIuMFwvd3AtY29udGVudFwvdXBsb2Fkc1wvc2l0ZXNcLzNcLzIwMjFcLzEyXC9ERUMtTk8yLUluZm9ncmFwaGljQ1JVREUtT0lMOC5qcGcifQ%3D%3D\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"940\" height=\"780\" src=\"https:\/\/news.samsungcnt.com\/upload\/2.0\/wp-content\/uploads\/sites\/3\/2021\/12\/DEC-NO2-InfographicCRUDE-OIL8.jpg\" class=\"attachment-full size-full wp-image-28564\" alt=\"\" srcset=\"https:\/\/news.samsungcnt.com\/upload\/2.0\/wp-content\/uploads\/sites\/3\/2021\/12\/DEC-NO2-InfographicCRUDE-OIL8.jpg 940w, https:\/\/news.samsungcnt.com\/upload\/2.0\/wp-content\/uploads\/sites\/3\/2021\/12\/DEC-NO2-InfographicCRUDE-OIL8-300x249.jpg 300w\" sizes=\"(max-width: 940px) 100vw, 940px\" \/>\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b2f1213 elementor-widget elementor-widget-text-editor\" data-id=\"b2f1213\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>To further illustrate the point, consider that back in October the price of crude oil prices reached\u00a0<a href=\"https:\/\/www.reuters.com\/business\/energy\/oil-prices-march-again-tight-market-us-crude-7-yr-high-2021-10-25\/\">multi-year highs<\/a>. And then by November it experienced its\u00a0<a href=\"https:\/\/www.reuters.com\/markets\/commodities\/oil-prices-rise-bets-opec-will-hold-off-output-hike-2021-11-30\/\">biggest monthly fall<\/a>\u00a0since that slump at the start of the pandemic.<\/p><p>Just to clarify, when we refer to crude oil prices, the general benchmarks are West Texas Intermediate (WTI), Brent, and Dubai. WTI crude is the basis for determining the price of all crude oil traded in the American market. Brent crude is produced in the North Sea off Britain and is widely used in Europe and Africa. And Dubai crude is the standard for the price of crude oil in the Middle East, while being mainly exported to Asia. Volatility in these benchmarks has major effects on the world, including trading companies. Let\u2019s explore this global impact further.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1db58f3 elementor-widget elementor-widget-heading\" data-id=\"1db58f3\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">A massive footprint on a global scale<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3669b73 elementor-widget elementor-widget-text-editor\" data-id=\"3669b73\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Crude oil price volatility matters because its footprint extends to so many industries. When media reports address crude oil prices, they often draw the link to the\u00a0<a href=\"https:\/\/fortune.com\/2021\/12\/13\/gas-prices-oil-2022-leading-forecast-models-eia-brent-wti\/\">cost of refueling vehicles<\/a>. This is because gasoline and diesel fuels are made from petroleum, which is another name for crude oil.<\/p><p>Additionally, as we\u00a0<a href=\"https:\/\/news.samsungcnt.com\/en\/rise-rise-petrochemicals\/\">previously discussed<\/a>, there are a surprising number of other key materials that are also derived from crude oil.<\/p><p>In brief, these include plastics, fibers, and many petrochemical products used to make everything from cosmetics to medicines. Therefore, for instance, traders working in the synthetic resins business would need to factor in crude oil price volatility.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6981e86 elementor-widget elementor-widget-image\" data-id=\"6981e86\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/news.samsungcnt.com\/wp-content\/uploads\/sites\/3\/2021\/12\/DEC-NO2-InfographicCRUDE-OIL\uc218\uc81511-1.jpg\" data-elementor-open-lightbox=\"yes\" data-elementor-lightbox-title=\"Share of Oil Consumption By Sector\" data-e-action-hash=\"#elementor-action%3Aaction%3Dlightbox%26settings%3DeyJpZCI6Mjg1NjUsInVybCI6Imh0dHBzOlwvXC9uZXdzLnNhbXN1bmdjbnQuY29tXC91cGxvYWRcLzIuMFwvd3AtY29udGVudFwvdXBsb2Fkc1wvc2l0ZXNcLzNcLzIwMjFcLzEyXC9ERUMtTk8yLUluZm9ncmFwaGljQ1JVREUtT0lMXHVjMjE4XHVjODE1MTEtMS5qcGcifQ%3D%3D\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"940\" height=\"744\" src=\"https:\/\/news.samsungcnt.com\/upload\/2.0\/wp-content\/uploads\/sites\/3\/2021\/12\/DEC-NO2-InfographicCRUDE-OIL\uc218\uc81511-1.jpg\" class=\"attachment-full size-full wp-image-28565\" alt=\"\" srcset=\"https:\/\/news.samsungcnt.com\/upload\/2.0\/wp-content\/uploads\/sites\/3\/2021\/12\/DEC-NO2-InfographicCRUDE-OIL\uc218\uc81511-1.jpg 940w, https:\/\/news.samsungcnt.com\/upload\/2.0\/wp-content\/uploads\/sites\/3\/2021\/12\/DEC-NO2-InfographicCRUDE-OIL\uc218\uc81511-1-300x237.jpg 300w\" sizes=\"(max-width: 940px) 100vw, 940px\" \/>\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f20dbe2 elementor-widget elementor-widget-heading\" data-id=\"f20dbe2\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">The forces behind the fluctuations and how to face them<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c1a41f3 elementor-widget elementor-widget-text-editor\" data-id=\"c1a41f3\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>The classic supply and demand equation is a vital consideration for every trading company. When demand rises for fuels and everyday products that rely on crude oil, putting pressure on supply, prices can be expected to go up. For instance, October\u2019s multi-year crude oil price highs were driven by\u00a0<a href=\"https:\/\/www.reuters.com\/business\/energy\/oil-prices-march-again-tight-market-us-crude-7-yr-high-2021-10-25\/\">tight supply and rising demand<\/a>\u00a0as social distancing guidelines relaxed globally.<\/p><p>Conversely, we saw a sharp dip in crude oil prices last year when the pandemic forced many people to enter lockdowns. And again more recently, the emergence of COVID-19\u2019s Omicron variant\u00a0<a href=\"https:\/\/www.reuters.com\/markets\/commodities\/oil-prices-rise-bets-opec-will-hold-off-output-hike-2021-11-30\/\">caused crude oil prices to tumble<\/a>. It\u2019s clear then that consumer behavior has a tremendous effect on crude oil prices, which in turn affect consumer sentiment as higher crude oil costs\u00a0<a href=\"https:\/\/www.reuters.com\/business\/energy\/rising-oil-prices-are-fuelling-expected-inflation-kemp-2021-11-03\/\">raise overall inflation expectations<\/a>.<\/p><p>Because of the risks associated with oil shocks, when prices rise while economic growth stagnates, supply becomes an important tool for maintaining control over crude oil costs. For example, we regularly see how oil-producing nations can control supply to affect crude oil prices, with the\u00a0<a href=\"https:\/\/www.bbc.com\/news\/business-59353194\">recent U.S. release of 50 million barrels of oil from its reserves<\/a>\u00a0being an attempt to bring down prices.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e04aa57 elementor-widget elementor-widget-heading\" data-id=\"e04aa57\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Samsung C&amp;T\u2019s role in stabilizing the rollercoaster<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-84438d3 elementor-widget elementor-widget-text-editor\" data-id=\"84438d3\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>While there isn\u2019t a lot that a trading company can do to prevent pandemics and political upheaval, traders can work to anticipate global price variations and strengthen supply chains in order to minimize the impact of market shocks.<\/p><p>Samsung C&amp;T Trading &amp; Investment Group gathers intelligence and acts upon it via offices based across the world. This is particularly important because the company works with various petrochemicals, trading them directly and finding solutions for suppliers and end-users.<\/p><p>Interestingly, according to the International Energy Agency, petrochemicals will account for one-third of the world\u2019s crude oil use by 2030 due to increased demand for petrochemical products, which will then be set to become\u00a0<a href=\"https:\/\/www.iea.org\/reports\/the-future-of-petrochemicals\">a bigger driver of global crude oil demand<\/a>\u00a0than fuels. So, Samsung C&amp;T will continue to pay close attention to changes in crude oil prices, acting accordingly across the company\u2019s global trading network.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>It\u2019s been a rollercoaster ride for international crude oil prices during the COVID-19 pandemic. When you look at a graph of the last five years, you can see that they plummeted in early 2020 at the same time as the pandemic struck. To further illustrate the point, consider that back in October the price of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":29428,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[15],"tags":[],"class_list":["post-22526","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-trading-investment"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The crude oil price roller coaster and its impact - Samsung C&amp;T Newsroom<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/news.samsungcnt.com\/en\/features\/trading-investment\/2021-12-crude-oil-price-roller-coaster-impact\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The crude oil price roller coaster and its impact - Samsung C&amp;T Newsroom\" \/>\n<meta property=\"og:description\" content=\"It\u2019s been a rollercoaster ride for international crude oil prices during the COVID-19 pandemic. When you look at a graph of the last five years, you can see that they plummeted in early 2020 at the same time as the pandemic struck. To further illustrate the point, consider that back in October the price of [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/news.samsungcnt.com\/en\/features\/trading-investment\/2021-12-crude-oil-price-roller-coaster-impact\/\" \/>\n<meta property=\"og:site_name\" content=\"Samsung C&amp;T Newsroom\" \/>\n<meta property=\"article:published_time\" content=\"2021-12-30T00:53:27+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-02-06T01:02:47+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/news.samsungcnt.com\/en\/wp-content\/uploads\/sites\/3\/2021\/12\/DEC-NO2-InfographicCRUDE-OIL6-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1232\" \/>\n\t<meta property=\"og:image:height\" content=\"604\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Samsung C&amp;T Global PR Manager\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Samsung C&amp;T Global PR Manager\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/news.samsungcnt.com\/en\/features\/trading-investment\/2021-12-crude-oil-price-roller-coaster-impact\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/news.samsungcnt.com\/en\/features\/trading-investment\/2021-12-crude-oil-price-roller-coaster-impact\/\"},\"author\":{\"name\":\"Samsung C&amp;T Global PR Manager\",\"@id\":\"https:\/\/news.samsungcnt.com\/en\/#\/schema\/person\/7c21bf3897113ac1b49ed07b1d871d08\"},\"headline\":\"The crude oil price roller coaster and its impact\",\"datePublished\":\"2021-12-30T00:53:27+00:00\",\"dateModified\":\"2024-02-06T01:02:47+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/news.samsungcnt.com\/en\/features\/trading-investment\/2021-12-crude-oil-price-roller-coaster-impact\/\"},\"wordCount\":664,\"publisher\":{\"@id\":\"https:\/\/news.samsungcnt.com\/en\/#organization\"},\"image\":{\"@id\":\"https:\/\/news.samsungcnt.com\/en\/features\/trading-investment\/2021-12-crude-oil-price-roller-coaster-impact\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/news.samsungcnt.com\/upload\/2.0\/wp-content\/uploads\/sites\/3\/2021\/12\/DEC-NO2-InfographicCRUDE-OIL6-1.jpg\",\"articleSection\":[\"Trading &amp; Investment\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/news.samsungcnt.com\/en\/features\/trading-investment\/2021-12-crude-oil-price-roller-coaster-impact\/\",\"url\":\"https:\/\/news.samsungcnt.com\/en\/features\/trading-investment\/2021-12-crude-oil-price-roller-coaster-impact\/\",\"name\":\"The crude oil price roller coaster and its impact - 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