As of Oct. 19, 2015, crude oil is trading at about $48 per barrel. The price of oil is determined by supply and demand factors as well as market sentiment.
Well-founded or not, a widespread sentiment or belief that oil demand is going to rise can lead to oil price inflation. It is also possible that the prices of oil and other commodities are governed by a 30-year cycle. The modern oil era started in 1901 in Texas, the site of the world’s first commercial oil well that was optimized for mass production. At the time, this well produced more oil per day than all other U.S oil wells combined.