How to Answer: How are crude oil prices determined?
Advice and answer examples written specifically for an Oil and Gas job interview.
13. How are crude oil prices determined?
How to Answer
Show the interviewer that you have a understanding of pricing in the oil and gas industry. Although you are likely not an oil trader, you should still have a good idea of how pricing works when it comes to crude oil, gasoline, and more. Of course, supply and demand is a factor but try to dig a bit deeper when you respond.
1st Answer Example
"I understand that market conditions, as well as supply and demand, are critical factors when it comes to pricing crude oil. Other important factors include consumer habits, terrorist activities and other global threats, environmental issues, and also the grade of the crude itself."
2nd Answer Example
"Crude oil prices are determined by multiple factors, which include market conditions, economic issues, environmental issues, and also the overall demand for the crude. The smallest market shift can alter the crude pricing, which is why some people dedicate their entire lives to learning about crude oil pricing and the factors that affect it."