Crude oil is a commodity with a wide range of applications. Most of the world’s economies use it in industry and agriculture, construction, and even medicine. Therefore, investing in crude oil can generate significant returns when the demand for it grows.
To be convinced, look at the crude oil price chart live at?https://capital.com/us-crude-oil-price.
Where Is Crude Oil Used?
A person who has never been interested in mineral matters will be surprised at how wide the range of uses of oil is besides its use as a fuel. Oil contains more than 1000 various substances that can be useful in different areas of life:
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Fuel. About half of all crude oil is used to produce fuel for industrial, transport and other needs. Gasoline is the most common of all types. However, in addition to it, it can be:
- diesel fuel
- aviation fuel
- marine fuel
- Production of plastics and polyethylene
- Synthetic fabrics and rubber
- Paints and solvents
- Detergents and various chemicals
Future Perspectives of Crude Oil Application
The range of applications for crude oil is constantly expanding, as scientists in laboratories work daily to synthesize new useful products from the chemical compounds contained in it. Oil has been known since ancient times, but until the middle of the 19th century, the range of its use was extremely narrow. There is no doubt that the future will reveal to mankind many more ways in which crude oil can improve human life.
The Importance of Oil for the World’s Economies
Extraction and refining of oil is an important source of income for those states that either have its deposits or are included in the production chains for its processing. There are countries that are very heavily dependent on their revenues from trading this asset. Therefore, fluctuations in oil prices affect not only the economies of countries, but also their domestic political stability. It is possible to say that oil is not only a pillar of the economies of such countries, but also a pillar of power.
How to Use Geopolitical News to Trade Crude Oil
This fact of the political importance of crude oil can be put to good use when trading Crude Oil Spot CFDs on the Capital.com platform?https://capital.com/us-crude-oil-price😕
- Following geopolitical news, traders predict the rise or fall in oil prices, receiving fluctuating profits when placing orders to buy or sell CFDs.
- Moreover, since the stability of national currencies also depends on crude oil prices, monitoring geopolitical changes will help predict the strengthening or collapse of national currencies in countries that rely on oil production and refining. This allows you to simultaneously earn money by trading in national currencies on Forex.
Investing in oil and trading in derivatives such as CFDs can be very profitable if the trader keeps a close eye on global political and economic news. The advantage of such trading is that even if oil prices fall, they subsequently recover and go into greater growth. There is no doubt that crude oil will continue to be an important asset for mankind in the coming decades. So trading it can bring significant profits.
