Oil's Market Value

Oil's market value means current prices of oil in dollar.if crude oil price is 50 $ from where does this number comes and who calculates it?

oil prices

Crude Oil is a commodity (raw material) and is used to manufacture various products.Being a high value commodity it is traded in stock market and Stock market works on a simple rule of demand and supply. If demand is high and supply is low, prices will  go up and vice versa.For example if on a given day there are more buyers than sellers for crude than at the end of the day genrally the prices will be higher than previous days prices. Even if there is sentiment that demand will be up in the future prices will automatically go up.In the current market scenario we are facing over supply of crude oil, mainly due to the increase in production from the USA, that’s why prices are low.

But still from which stock exchange does this number comes? The answer is  USA's stock market though it is traded in stock exchanges of other countries also but we follow USA.

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