Oil, in the context of the global economy, primarily refers to crude oil and the various petroleum products derived from it. Crude oil is a naturally occurring, complex mixture of hydrocarbons, formed from the remains of ancient marine organisms. It is typically found in underground reservoirs and extracted through oil drilling. The largest oil reserves are located in Venezuela, Saudi Arabia, and Canada.
Refineries process crude oil into a wide array of products, including gasoline, diesel fuel, jet fuel, heating oil, and asphalt. These products serve as energy carriers and are essential for transportation, heating, and various industrial processes. The price of crude oil fluctuates based on factors such as production levels, geopolitical events, and market demand. As of February 24, 2026, Brent crude oil is trading at $71.81 per barrel, while West Texas Intermediate (WTI) crude is at $66.52 per barrel. Market analysts expect Brent crude oil to trade at $72.51 USD/BBL by the end of this quarter.
