The Determinants of Oil Prices

  • Jean-Pierre Angelier

Abstract

Three factors work together to determine the price of oil: in the short term, the balance between supply and demand; in the medium term, the structure of the oil industry; and in the long term, the marginal production cost consistent with world oil demand. Using this analytical framework, one can forecast that, in the year 2000, oil prices will not be significantly different from those of today.

Published
1991-12-31
Section
Articles