What does Crude Oil mean?
Crude oil is a term used for liquid petroleum in raw form before refining. Crude oil exists in liquid phase in nature within underground oil reservoirs and is extracted through an oil well.
Futures Knowledge Explains Crude Oil
Crude oil is a mixture of hydrocarbons and is a viscous liquid. It is found in underground oil fields in different parts of the world. The quality of crude oil extracted from different oil fields can vary. They have different properties such as gravity, viscosity and sulphur. The three popular crude oil benchmarks are Brent, WTI and Dubai/Oman. Crude oil is one of widely traded commodities.
Crude oil is further processed in refineries to get diesel, gasoline, heating oil, kerosene, and other products. Crude oil is also known as rock oil or mineral oil.