Discovery of crude oil and its products has been of great advantage to mankind. The human race has benefitted from crude products; gasoline or petrol, LPG, kerosene lubricants and asphalt. This natural resource has been of immense service to us. More..
People have been paying for fuel through their noses. This is a trend that is being followed across nations all over. In times like this it becomes necessary for us to understand the trading and marketing of crude oil. We need to know why we are paying what we are paying.
Crude oil trade is a booming business today. This is largely due to the ever-increasing costs of fuel. Many companies owning oil fields have decided to maximize profits from their upstream operations. Their main aim is to capture opportunities for growth. Further value creation is also their strategy. Many oil marketing companies are in contract with refiners to sell them physical crude oil for refining. Alternatively, they also have trading teams that enter into financial contracts to take charge of trading profits when time is ripe.
Hence there is a lot of manipulation in the market of crude oil price. The oil companies increase the rate of oil based on speculation. Demand and supply has nothing to do with it. This is mainly carried by the oil marketing and trading companies. Many a times the rate of crude rises and the market crashes. This happens because the traders had wrongly speculated that the prices of oil would go down. When this does not happen, the traders start buying oil contracts from the market. Apparently the traders and marketers are increasing their say how in the market. The government seems to be doing little about it. No wonder the price of gas is soaring!
Discovery of crude oil and its products has been of great advantage to mankind. The human race has benefitted from crude products; gasoline or petrol, LPG, kerosene lubricants and asphalt. This natural resource has been of immense service to us. 
