Crude oil (or petroleum) is one of the most traded. It is a fossil fuel, and one of the world’s most important natural resources. Derivatives of oil include gasoline (petrol), kerosene, heating oil, various gases, lubricants and waxes
There are four majorbenchmarks which help facilitate the trading of oil – the Brent Crude, Dubai Crude, West Texas Intermediate and OPEC Reference Basket.
Oil is a finite, non-renewable energy resource, and its availability is a source of great economic and political agitation. Large oil producing countries such as Saudi Arabia,, Iran, or Norway draw a significant share of their economic power from oil.
Oil and forex trading
Due to its volume and importance, oil trading can have a significant impact on theof . Some currencies, such as the are even referred to as “petrocurrencies”.
For example, thebuys oil from neighbouring Canada. To do this, buyers need to convert into CAD. This increases demand of the CAD and thus influences the .
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