What is the trading of crude oil?
Crude oil is also known as petroleum, or black gold. Customarily, unprocessed petroleum directly exploited from oil rigs are called crude oil, which is mainly dark brown or dark green viscous fluid or semi-solid combustible matters comprised of various of hydrocarbons, it is a kind of compound of complicated composition.
Crude oil investment refers to the making of the difference between buy-in and sell-out with the use of crude oil price fluctuations in international market, which is an internationally important investment project just like stock and gold.
Why do we invest in crude oil?
Crude oil investment is a popular investment project in the world that was emerged
recently thanks to its advantages:
Industrial blood: Crude oil is of superb physical and chemical features. Other than its nature of being a kind of energy, its industrial features are widely applied on national economy and a number of sectors. It is a critical foundation for the promotion of national economy and industrial modernization. Any line of business today cannot survive without petroleum just like how human body cannot survive without blood, hence being called the “industrial blood”.
Strategic position: The control over crude oil after WWII promoted and consolidated the leading position of the United States in world’s political and economic patterns, and acted as the critical booster of the United States on its way to global hegemony. With the rapid industrial development, the entire world’s faced with the pressure from economic development as well as energy shortage, and the latter is now an international problem, making crude oil an uncommon commodity, but something of decisive effect on global political pattern, economic position and military situation.
Large volume of business: Major petroleum transaction markets in the world are: A total of 5 markets respectively in northwestern Europe, Mediterranean region, Caribbean region, Singapore and the United States. Crude oil has already been seen as the king of commodity and the commodity with the largest volume of business in the world due to global economic development and the increasing demand of energy.
As one reviews the history, the amounts of increase and decrease during some of the major crude oil price fluctuations were incredibly dramatic. Stories about profit-making began to spread and are popular among investors.
Because of the aforementioned factors, crude oil investment therefore becomes one of the hottest investment projects in the world recently.
Introduction of the New York Mercantile Exchange, Inc:
The New York Mercantile Exchange, Inc was jointly founded by the New York Mercantile Exchange (NYMEX) and the Commodity Exchange, Inc (COMEX) in 1994, it is the largest commodity exchange in the world. The New York Mercantile Exchange, Inc is located in the financial center of Manhattan, New York, right next to the New York Stock Exchange. The New York Mercantile Exchange, Inc plays an important role in commercial, urban and cultural life of New York. It created thousands of jobs for financial industry and industry federation, it supports community culture and social services through its own charity funds as a way to expand its philanthropic efforts in such a megacity. Its transactions are mainly involved in energy and precious metals, but the transactions of energy are far more than that of other products. The transactions in the exchange were mainly futures goods and options trading. Up till now, the number of futures transactions greatly exceeds the volume of share options.
Risk warning：Margin trading in all foreign exchange, precious metals and CFD contract products is accompanied by a huge risk and therefore not suitable for all investors. Please be sure to invest fully within your own limits when you fully understand the risks involved. For more risk details, please refer to us 。