It is yellowish black naturally occurring liquid beneath the Earth surface. It is mainly used for power and energy to run machines that human use. It usually is referred to as petroleum. A significant portion of consumers and industries all around the world mainly depends upon oil for day to day activities. Like many other commodities, not all regions of the world produce the same amount of oil, but it occurs naturally in different areas.
Russia, Saudi Arabia and the United States of America are three top oil-producing countries in the world. In 2018, owing in share to progress in horizontal drilling and hydraulic fracturing, the U.S. turn into the world biggest crude oil producer. According to an estimate, around 80% of world available oil reserve is found in the Middle East with 62% from Arab countries including, Saudi Arabia, Kuwait, Iraq, Qatar and the United Arab Emirates.
The oil is vital to countless industries all over the world because it is significant to the maintenance of commercial development. It is a serious concern to several nations. Oil accounts for a substantial proportion of world energy intake, ranging from high of 53% for the Middle East, 32% for Europe and Asia, 44% for South and Central America, 41% for Africa and 40% for North America. The annual world consumption of oil is about 30 billion barrel oil per year, and top oil consumer nations are usually developed countries.
In the United States, the states of Hawaii, Arizona, Nevada, Washington, Oregon and California, the Western States Petroleum Association, represents firms accountable for producing, transporting, distributing and marketing petroleum. The leading exchanges markets for crude oil are the Intercontinental Exchange (ICE) and the New York Mercantile Exchange (NYMEX). Both exchanges are regulated by the Commodity Futures Trading Commission (CFTC) in the United States and the Financial Services Authority (FSA) in the United Kingdom.
When public around the world talk about oil, they usually refer to crude oil, which is broadly used and most traded on international markets.