Crude oil is the term used for “unprocessed oil” and it is also known as petroleum. Crude oil is a fossil fuel that is naturally derived from decaying plants and animals. The various elements or compounds with which crude oil is made are carbon, hydrogen, sulfur, nitrogen, oxygen, etc.
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Crude oil differs in color from plain to tar black and this is because of its constituency. Hydrocarbon is the main element that contains a lot of energy and that is the reason why crude oil is used in producing many forms of energy like gasoline, diesel and others. Hydrocarbon is considered as excellent element because it is used in many forms. Like if we chemically treat the hydrocarbon in different ways many things can be made out of this like synthetic rubber, nylon, etc. It is believed that due to its high energy density, plenty availability etc, crude oil has become the world’s most impressive source of energy. It is estimated that the present utilization of crude oil is about 90 million barrels per day. Studies reveal that proportion of oil is plummeting as petroleum recovery is getting intrinsic. Because of these increased in consumption level, the reserves would be gone and may lead to global energy crisis. Not only this, crude oil releases carbon dioxide when they are burnt and which has bad impact on the environment and which led to global warming.
Nowadays crude oil has been capturing many news headlines worldwide whether high or low. Crude has been throwing its sense of importance to the consumers globally for the past years. In the past many economies had failed to face crude oil price shocks of 1974 and 1979. Most economies both developed and developing had knowledge and are prepared to face these shocks. Between 2001 and 2004, crude oil was in the range of $US 20 and $US 40 a barrel and it rises to $US 70 a barrel in 2006. The crux was basically the reason of rise in prices of oil which was the mismatch between the demand and supply of refinery products. It was recommended to increase the output if the prices continues with this range and they did the same in 2006 and due to this the crude oil prices have touched the year’s low and had come down to 30% of its high.
Gold is odd as commodity in that operates a little differently than the other commodities because of its lower demand for industrial products. As opposite to other metals like silver and copper, gold’s demand is not the primary factor in its price movements with Indian weddings being one of the areas where gold is demanded. There are of course other things like regular jewelry and some industrial uses but those uses are not related to the use of other uses like industrial purposes.
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