Crude Oil

crude oil Energy Stocks Could Get a Boost From Congress in 2015
Source: Jonathan Zander (Digon3) via Wikimedia commons
Crude oil, or petroleum, is a natural resource created when dead organisms are put under extreme heat and pressure for a long period of time. This liquid is then extracted through oil rigs and refined to be used as gasoline, kerosene, or any other final product. Crude oil is used in all industries as it is the main fuel for heavy machinery.

Crude oil is currently traded through two commodities: Brent and WTI. The difference between the two is the grade and location of the oil. Brent is London oil and is often from Saudi Arabia and Russia, representing the global market. WTI, or West Texas Intermediate is oil from the US and offers a domestic view on oil prices. Along with crude oil commodities, investors can buy into the petroleum industry through corporations such as Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX)

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