Crude oil is the "unprocessed" oil that comes out of the ground. It
is also known as petroleum. Crude oil is a fossil fuel, meaning that it was made naturally from decaying plants and animals
living in ancient seas millions of years ago. Crude oils vary in color, from clear to tar-black, and in viscosity, from watery
to almost solid.
Crude oil is classified into various
grades according to density (heavy vs light) and sulphur content (sour vs sweet). There are three primary benchmarks of crude:
West Texas Intermediate, Brent Blend, and Dubai. West Texas Intermediate is the major crude oil benchmark traded in the U.S.
on the New York Mercantile Exchange (NYMEX). It is light and sweet thus making it ideal for producing products like low-sulfur
gasoline and low-sulfur diesel.
Whether you are a speculator or a hedger this section on the crude oil market
contains a wealth of valuable information. You can read about the history of the crude oil market, the fundamentals
that make it move, and the futures and options specifications. You can also view quotes, charts, current margin requirements,
and news that is affecting the crude oil market. However, if you are new to the commodities markets you should consult
with a licensed broker before starting to trade.