What is Crude Oil?
Crude oil is unrefined petroleum extracted from underground reservoirs. Two benchmark grades dominate global pricing: WTI (West Texas Intermediate) โ light, sweet, US-produced; and Brent โ North Sea-sourced, slightly heavier, used for ~two-thirds of world oil pricing. Refined products include gasoline, diesel, jet fuel, and petrochemicals.
Why it matters for investors
Oil prices flow through to inflation (transportation, manufacturing), corporate earnings (energy sector, airlines, materials), trade balances (oil-exporting vs. importing countries), and geopolitics (Middle East, Russia, Venezuela). For India, China, Japan, and Germany โ large oil importers โ sustained price moves directly impact current accounts and inflation.