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Definition

A hydro-carbon liquid deriving originally from the fossilised remains of ancient forests of trees. These are petro-chemical oils that are used to make petroleum for fuel and to manufacture a variety of other products such as plastics. There are various varieties of oil such a West Texas Light and Brent. The price of these oils is critical to the level of world inflation since most products are transported by an internal combustion engine at some point in their life cycle and many others contain some sort of plastic or oil derivative. With the advent of renewable energy, the use on internal combustion engines is expected to decline and with it the demand for oil, however, this trend will take several decades and oil prices remain important. The Ukraine war beginning in 2020 caused oil prices to spike, but after President Biden's visit to Saudi Arabia in June 2022, the price of North Sea brent fell to support at around $72. From there it rallied and by the end of July 2023 it was trading for $83 per barrel.

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