Finance Wolf

The Strait of Hormuz crisis proved why Crude oil is the lifeblood of the world economy. The world consumes approximately 105 million barrels of crude oil per day. India alone consumes ~5.5 million barrels per day. But one particular trait about this extraordinary commodity, which makes it interesting, is its pricing. Governments track it, corporates and investors analyse it 24/7 throughout their lives. Crude oil price is unarguably the single most important factor impacting human lives daily. But how are crude oil prices determined on a global level? And with crude oil coming from different parts of the world, how does the pricing mechanism work? Unlike gold and silver, crude oil does not have a single price. Determining crude oil price operates through a system of benchmark crudes and price differentials. Understanding how these benchmarks work is essential to understanding crude oil prices. Crude Oil Prices: Quality Spectrum Crude oil is an unrefined mixture of hydrocarbons extracted...