You are here because you want to learn more about crude oil, which is one of the most widely used commodities. You can learn a lot about this commodity, including its origins, global usage, and trading decisions. Let’s look at some essential facts.
1) It is a natural resource
Crude oil is a naturally occurring product that contains a small amount of sulfur, oxygen, and nitrogen. After millions of years, it is formed from the remains of small animals or plants below the earth’s surface. The oil is made from the remains of small animals and plants that have been exposed to heat and pressure.
Depending on the oil type and extraction method, it can be classified as heavy, extra-heavy, medium, or light.
2) Crude oil is used in production processes
Crude oil is one of the essential sources of energy on the planet. It’s used to make heat and as a fuel. It is also used in asphalt, lubricants, and waxes, as well as many other petrochemicals. These products can then be used to make other products, such as plastics and clothes.
It is incredible to realize that crude oil was used in the production of everything around us.
3) Five Countries Produce Half of the Oil Used Around The Globe
Out of the 92 million barrels of oil produced in 2017, 46 million were made by Saudi Arabia, Iran, Russia, Canada, and the USA. Other countries have the rest of the oil.
This product’s price is affected by many factors such as weather and political uncertainty. In severe weather, oil cannot be extracted from the ground. This could lead to a shortage of the product. The result is that oil prices rise. Experts take all these factors into consideration to ensure there is enough oil.
4) Daily Consumption
An Olympic-sized pool has a width of 25m, 50m, and a depth of 2 meters. One such collection can hold 1577 barrels worth of crude oil. It will shock you to learn that the entire world consumes oil in just two minutes.
If traders notice that oil usage is rising, this gives them an indication that demand for the commodity will increase. Crude oil is an indicator of global economic health. The oil consumption will continue to rise in a strong economy.
5) Daily Consumption in The USA
The daily oil import from the USA is 8 million barrels. The USA is the world’s largest oil producer, but it still imports approximately 8 million barrels of oil daily. Two reasons are behind this. The first is that the USA consumes more fat than other countries. Second, not all oil produced in the USA is of sufficient quality.
These are five facts about crude oil that might interest you.
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