Facts About Crude Oil and a Brief History

Facts About Crude Oil and a Brief History

Facts About Crude Oil and a Brief History

Today, the world has become quite sophisticated. Human needs are no longer as difficult to meet as they were many years ago. In fact, what many considered science fictions couple of decades ago are now facts. Numerous discoveries have been made, the lives of many changed, and the economy built. The amount of information also being produced and disseminated is quite exponential.
However, while most of these inventions shape the way we live today, our most significant discovery remains to be the crude oil.

Crude oil commodities have significantly improved the lifestyle of the modern man. In today’s world, almost everything we use has some indirect link to this precious commodity. Besides, of all the precious metals that have been discovered to date, nothing can be compared to the crude-oil’s usefulness.

Crude oil, naturally found in liquid form, is made up of hydrocarbons. It is located within the earth’s crevices and is considered the world’s most sort-after commodity today. Top of its producers includes Saudi Arabia and Russia, followed by the United States of America. Beyond doubt, it has been the most valuable commodity to be discovered.

Crude oil, commonly referred to as petroleum, is believed to comprise of dead and decomposed organic matter from millions of years ago. Many developed countries, however, have been promoted by this great gift. Every major economy and corporate house in the world also deals in this product. Crude oil and its commodities have simply fueled the world’s economic growth. Currently, most developing countries are also pulling their resources together to trade in this product and boost their economies.

Finally, with so much potential in crude oil and commodities, we shouldn’t forget that free market forces mostly govern the prices. Therefore, while trading in it can positively impact on one’s life, it can also have adverse effects. As such, it can sometimes be volatile, and thus, quite challenging to succeed in making money from trading oil. Some of the worlds largest banks track oil prices by using ETFs and options. They can also take positions in Oil exploration and production companies. Exposure to Oil is usually part of a speculative portfolio.

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