Jun 9
Comdex — Oil
Gold and silver were already a subject of a short article to introduce them as tradeable commodities and now it is the turn for oil. Oil will be the 3rd cAsset tradeable on Comdex cAssets DEX. First of all, let’s specify that we are talking about crude oil, and not things like olive oil, etc.
Oil in history
Although we all know oil is the basis for the fuel we put into our cars, oil is used surprisingly long in history. Ancient documentation indicates oil was already used by Babylonians and Persians, even going back more than 4000 years. Persians already used oil as lighting in the homes in the upper levels of their society. In China it is known that oil was already used 2000 years ago. The Chinese used oil already as fuel and the first drills were made of bamboo.
From that point onwards we can find all sorts of hints of oil being used throughout history. From streets covered with tar in Baghdad to methods to repell invaders at the gate of your castle, we know that oil has played more roles through the years than we are probably aware of.
If we look into our current society we use oil for tons of different products. We create various forms of fuel out of crude oil, plastic, asphalt, LPG, rubber, paint and we can go on for a long time. The possibilities are just enormous.
Oil as investment product
Oil is besides a consumable also an investment product. Just like other commodities the price is determined by supply and demand. And since the Industrial revolution the demand for oil has gone up and accelerated the last few decades. This can also be seen in the price of oil. Especially since the 00’s a rise in price can be seen with a decrease in price during the economic downturn between 2015–2020. But from there the price has already gone x6 in nearly 2 years time.
Although we have not reached the all time high yet, we are currently experiencing a very sharp rise in the price of oil. With all the macro-economic and macro-politic changes and challenges we are seeing nowadays it can be expected that it will rise more in the future. Comdex will offer you the possibility to speculate on the price of oil and profit from the price movements. This way we can still make profit while filling our tank becomes more expensive :)
