The Chief Determinants of Crude Oil Prices in the World in 2014 and 2015


  • Agnieszka Pach-Gurgul Uniwersytet Ekonomiczny w Krakowie Wydział Nauk Ekonomicznych Katedra Międzynarodowych Stosunków Gospodarczych



oil, oil price fluctuations, oil shocks, OPEC, shale revolution, price war


Similarly as in the case of many other commodities, the prices of crude oil fluctuate. The main determinantsof crude oil prices comprise:--market-related factors, which are the long-term drivers of crude oil price tendencies: supply and demand,--short-term drivers, such as investors’ sentiments and geopolitical events, OPEC decisions, USD exchangerates, economic prognoses.It is difficult to attribute the dramatic drop of crude oil prices, which started in 2014, solely to the market-relatedcauses. This drastic decrease of crude oil prices ended a four-year long period of relative stability ofthe price oscillating around 105 US dollars per barrel. The drop in prices, which is significantly larger than inthe case of other raw products, and in comparison with the “peak prices” from 2011, might indicate the end of the “super cycle” of crude oil prices. The purpose of this article is a comprehensive analysis of the factorsdetermining the crude oil prices in the period of 2014-2015, as well as to answer the following questions:--what is the main driving force of the decrease in prices of the most important energy carrier on the internationalmarket of raw materials?--what actions on the world market lead to the decrease of crude oil prices?--what are the consequences of the decrease of crude oil prices on the world market for both the suppliersand the recipients?


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Author Biography

Agnieszka Pach-Gurgul, Uniwersytet Ekonomiczny w Krakowie Wydział Nauk Ekonomicznych Katedra Międzynarodowych Stosunków Gospodarczych

Agnieszka Pach-Gurgul, Ph.D., assistant professor at International Economics Department, University ofEconomics in Krakow. The author of Single Electricity Market in the European Union in the Context of PolishEnergy Security, as well as numerous articles and chapters in books related to the following areas of interest:changes in Polish and world power sector; energy security; European Union energy policy; a single energymarket; and the challenges for contemporary ecological energy.


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How to Cite

Pach-Gurgul, A. (2017). The Chief Determinants of Crude Oil Prices in the World in 2014 and 2015. Studies of the Industrial Geography Commission of the Polish Geographical Society, 30(3), 185–198.