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Home Forex Terms

Oil

by Miracle Admin
January 10, 2021
in Forex Terms
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Definition – What does Oil mean?

Oil is the common way of referring to petroleum, a mixture of hydrocarbons that humans burn for energy. Although it is naturally occurring, the scarcity of oil has made it a valuable commodity. Countries with large deposits of oil often reap economic benefits when the worldwide price of oil increases. Oil is also referred to as crude oil or simply crude.

ForexTerms explains Oil

Oil is a huge force in every world market, and the forex market is no different. The price of oil affects different currencies in different ways. Japan, for example, imports all of its oil, so – all other factors being equal – a high oil price can be bad news for the yen. Canada has a lot of oil, so – all other factors being equal – increases in the price of oil can result in the Canadian dollar appreciating against other currencies.

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