Crude oil, known as the black gold, is an essential element for global economic development. Since the industrial revolution of the 18th century, it has become the cornerstone of prosperity for every country, widely regarded as the “industrial blood” and “mother of industry.” Recently, the continuous fluctuations in the international crude oil market have attracted widespread attention, with 4E emerging as a popular trading platform among investors.
The Origin of Crude Oil Futures
The earliest crude oil futures trading can be traced back to Dubai in 1972, now one of the OPEC member countries and one of the world’s largest oil-producing countries. At that time, the publicly quoted price for crude oil futures was $1.9 per barrel, while Brent and U.S. crude oil (WTI West Texas Intermediate crude oil) began trading in 1976 with an opening price of around $12 per barrel. Despite the lower production of U.S. and Brent crude oil, leading to lower trading volumes, the integration of Dubai crude oil, U.S. crude oil, and Brent crude oil over time has led to a convergence in crude oil prices, opening up trading more comprehensively to the global market.
During the Age of Discovery, European and American countries began exploiting resources through large-scale plundering. The origin of crude oil futures was also to address early supply shortages by preselling to high-priced buyers through futures. However, the industrial value of crude oil made it a bulk commodity sought after by all countries.
Geopolitical Militarization Triggered by Crude Oil
Geopolitical militarization triggered by crude oil has become a common occurrence, from the Iraq War to recent tensions in the Middle East, all of which are mainly related to crude oil. Whether it is the struggle for oil exploration rights or limiting oil exports to raise prices, anything related to crude oil can potentially ignite conflicts.
The open trading of futures shifted the industrial power of crude oil from the military domain to the economic domain, leading to economic warfare becoming commonplace. For example, the U.S. has twice imposed oil sanctions on Russia. The significant drop in oil prices in 2014 also resulted in Russia’s credit rating being downgraded to junk status. OPEC has also consistently used falling oil prices to undermine the U.S. shale oil industry. It can be said that the main theme of modern wars invariably revolves around the industrial lifeline – oil.
The Industrial Value of Crude Oil
So, why does crude oil still lead in trading volume compared to gold and silver? Although these commodities are all influenced by geopolitics and considered safe havens, what sets crude oil apart?
The reason is quite simple: crude oil is a one-time consumable energy source that disappears after combustion, requiring repurchase for continued use. Additionally, crude oil is a fossil fuel with limited reserves. In contrast, gold and silver do not get consumed upon purchase. Therefore, their mining quantities gradually increase, while crude oil is continuously being consumed daily, leading to a decrease in total reserves. Furthermore, gold and silver do not have practical value in themselves; their value is collectively assigned by people.
Before the industrial age, humans mainly used seven metals: gold, silver, copper, iron, mercury, lead, and tin. Gold became a widely accepted valuable currency due to its resistance to rust, malleability, ease of shaping, and unique color. In comparison, various high molecular secondary products of crude oil (such as plastics, polymer solvents) and refined petroleum products have practical daily use values. The widespread recognition of crude oil’s industrial production capacity by people has shaped its inherent value.
Therefore, crude oil has become a widely recognized financial investment tool due to its endless industrial value. Major investment banks like Goldman Sachs and JPMorgan are actively attracting industry-leading talents and investing heavily in operating crude oil investment departments. This fully demonstrates the importance of the crude oil market in the investment field and perfectly explains why crude oil has become the king of bulk commodities.
Trade Crude Oil with 4E
The recent continuous fluctuations in the international crude oil market have attracted global attention. In this dynamic and opportunistic market, 4E, the world’s leading financial asset trading platform and a global partner of the Argentine national team, has become the ideal place for global investors to pursue crude oil opportunities.
4E supports Brent and WTI crude oil trading, offering leverage of 10-150 times for both long and short positions, allowing investors to flexibly seize market opportunities. Whether bullish on rising oil prices or bearish on falling oil prices, investors can achieve higher potential returns through leveraged trading.
The 4E platform not only supports crude oil derivative trading but also includes multiple bulk commodities such as gold, silver, and platinum, providing investors with diversified investment choices. Among them, the performance of crude oil has sparked intense market interest, becoming the focal point for investors rushing in.
Oil, as the lifeblood of industry, provides significant investment opportunities through its price fluctuations. Recently, the 4E platform launched the Crazy Thursday promotion, where users trading bulk forex stock derivatives every Thursday can earn high spread rebates. With no complicated calculations or additional operations required, as long as your trading volume meets the requirements, rewards will be automatically credited to your account on Friday.
