Page 5 - Oil

INTRODUCTION The Science Crude oil is created through the heating and compression of organic materials over a long period of time. Crude oil is thus a fossil fuel. Most of the places you can find crude oil were Crude oil is a major fuel used by people around the world and one of the most actively traded once sea beds. Crude oils vary in viscosity from water to almost solid; as well as in color from commodities in the financial markets. Oil-related trades are a staple for traders, investors, and clear to tar-black. hedgers across the globe. In fact, S&P 500 has a 6.8% exposure to the energy sector. Any increase in the crude oil prices directly impacts the cost of gasoline, home heating oil, manufacturing and electric power generation. The crude oil market is heavily influenced by important news events, economic reports, turmoil in the Middle East, and value of US Dollar, Nitrogen, Oxygen, making it highly volatile. Metals and Salts. The top five countries that consume the most oil are United States, China, Japan, Russia, and Germany. With the current rate of consumption, the worldwide oil reserves are estimated to Sulfur be extinguished in another 50 years, possible leading to a global energy crisis. Scientists and engineers are currently working hard on inventing a more efficient extraction and processing of crude oil to delay this crisis. The Top 5 Consumers Russia Hydrogen Germany USA China Japan Carbon Hydrocarbons are usually the primary component of crude oil. Their composition can vary from 50%-97% depending on the type of crude oil and how it is extracted. On average, crude oils are made of 84% Carbon, 14% Hydrogen, 1-3% Sulfur, and less than 1% Nitrogen, Oxygen, Metals, and Salts. 01 OIL IN THE FINANCIAL MARKETS 02