Crude oil

Trade Crude oil

Crude oil is so important for the global economy – its derivatives are sources of energy for machine equipment and transportation in industries amongst others. It is also important for the individual consumer as well, because the price of consumer goods depends on the price for transportation that is given by the fuel price. When you consider it like this, crude oil affects the whole economy from the level of inflation to the purchasing power of households.

Russia, Saudi Arabia, United States and China are the main producers of crude oil, and yet the USA, Japan and countries of the Eurozone also belong to the largest importers of crude oil. The increasing prices for the oil strengthen producers but also have a negative impact on the economic conditions of importers.

The price is tied to both natural resources and the economic system throughout the world. Strengthening economic growth means the demand will also grow, making the price fall, and yet negative political affairs such as wars and strikes can result in the growth in the price of crude oil.

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