About Crude Oil Crude oil is often referred to as Light Sweet Crude and WTI Oil or CL on futures exchanges. In its raw form when freshly extracted the color of Crude Oil can vary from black to dark brown, even with a slight red crude live green hint.
The primary use of Crude Oil is for production of fuel oils and gasoline and since the 1900’s has become the world’s main source of energy. Trading firms, companies in the energy sector and retail traders all follow Crude oil prices closely, which can be traded on futures exchanges such as NYMEX and ICE. A single lot size is quoted in dollars and cents per barrel. Crude oil prices behave much as any other commodity with wide price swings in times of shortage or oversupply.
The crude oil price cycle may extend over several years responding to changes in demand as well as OPEC and non-OPEC supply. Over the last 50 year Crude Oil has seen many lows and highs, conflict in the Middle East and production strikes in Nigeria are some of the many reasons we have had for the price of Crude Oil to rise. Traders and speculators can profit from these flucations in price through buying or selling Crude Oil CFD’s. Over the long term Crude Oil tends to follow strict lines of trend, if you can identify a trend correctly then you could profit from those moves by selling “short” or buying “long” oil prices.
Oil demand is highly dependent on global macroeconomic conditions, so this is also an important determinant of price. Some economists claim that high oil prices have a large negative impact on the global growth. This means that the relationship between the oil price and global growth is not particularly stable although a high oil price is often thought of as being a late cycle phenomenon. Please forward this error screen to sharedip-148661367.