This chapter explains the market for trading crude oil and refined petroleum products.


Petroleum is a general term that describes any liquid fossil fuel. Crude oil, gasoline, and heating oil can all be called petroleum. The most important petroleum commodity is crude oil. Crude oil is unrefined petroleum that has been removed from the ground prior to being processed. There is a global market for crude oil and a large infrastructure to transport and process it. As a result, the price of crude oil is approximately the same everywhere in the world.

There are smaller, regional markets for refined petroleum products like ...

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