Tag: offshore portfolio management

What really determines oil prices?

Image source: pixabay.com

 

Oil holds its constant title as the most valuable commodity in many modern societies (making it a major element in most local and offshore portfolio management accounts), not only because it is one of the highly-traded non-financial products globally, but also because products derived from petroleum like oil covers a huge percentage of the world’s energy demand.

In the U.S. alone, crude oil provides 39% of the country’s energy source, with transportation topping the list for the industries that rely mainly on oil products on their day to day operations.

Since it’s the most sought-after commodity in the market today, the price of oil constantly changes. There are several factors that determine the price of oil and dramatic changes in these figures greatly affect the economy on a global scale.

However, unlike other products, what determines oil prices defies the basic rules of supply and demand. This is because the primary determinant of this commodity’s price will depend on traders who bid, on a daily basis, on oil futures contracts through the commodities market.

Traders make their decisions every day and their behavior that decides how they bid depends on controlled factors such as access to crude oil’s future supply, demand from the top oil consumers that include the United States, and most importantly, the present supply of this commodity in terms of output.

While traders and their sentiment towards oil as a potentially valuable commodity in the future can dramatically affect its price, other factors that are geopolitical in nature can also predict how oil prices will fare in the market.

Deals among economically dominant countries in the world greatly control the price of oil through pivotal decisions that could, in one way or another, influence the sentiments of traders and financial betters who are always on alert for every possible fallout.

Unforgettable historical events that took place in the Bahamas

Image source: thousandwonders.net

 

The Bahamas is a major archipelago in the Atlantic Ocean and a popular destination worldwide not just as a top tourist hotspot but as a global offshore portfolio management center that serves an impressive domestic and international client base. While the world sees the Bahamas as a top destination for travel and business, there were several moments in history that placed the Atlantic nation on the international headlines.

Here are the important events that took place in the Bahamas:

 

Establishment of Freeport

It was in 1955 when the Bahamas made a historic move to establish a free trade area where tourism and offshore banking emerged and prospered. The mid-1950s was an important decade in the history of the Bahamas when Wallace Groves started his vision to transform Grand Bahama Island into a haven not just for travelers but also for businessmen. That’s when he established a promising city, the Freeport, as a central business and tourism hub.

 

Bahamian Independence

After centuries of colonial rule, Bahamas decided to finally enjoy its independence on July 10, 1973, from the British colonial rule. On that same year, the newly-independent territory became an official member of the United Nations. This was just years after Britain granted the Bahamas self-government, one of the most important historical events in the country.

 

Aaliyah’s tragic plane crash

One of the most known accidents that took place in the Bahamas is the death of Aaliyah, a popular American singer/actress. On August 25, 2015, the actress was onboard a plane when it suddenly crashed just minutes after takeoff from the Abaco Islands in the Bahamas. The artist was not alone in the small plane, as she was also with seven others who suffered the same fate.