Supply and Demand: Global oil production levels, inventories, and consumption patterns directly impact prices. Higher demand and/or lower supply lead to increased prices.

Geopolitical Events: Political instability, conflicts, or policy changes in oil-producing regions can disrupt supply and cause price spikes. Sanctions also play a role.

Economic Growth: Strong economic growth typically drives higher oil demand, increasing prices. Conversely, economic slowdowns can depress demand and prices.

Currency Fluctuations: Since oil is priced in US dollars, fluctuations in the AUD/USD exchange rate can affect the local price for Australian investors.

OPEC+ Actions: Decisions by OPEC+ (Organization of the Petroleum Exporting Countries and allies) regarding production quotas significantly influence global oil supply and prices.

Government Regulations: Environmental regulations, taxes, and subsidies related to oil production and consumption can impact prices.

Technological Advancements: Improvements in extraction techniques (e.g., fracking) and renewable energy technologies can affect supply and demand dynamics.

Inventory Levels: Changes in crude oil and refined product inventories, reported regularly, can signal shifts in supply-demand balance.

Investor Sentiment: Market speculation and investor expectations about future oil prices can also influence current prices.