Crude Oil

Crude oil is a naturally occurring, unrefined liquid fossil fuel extracted from underground geological formations, comprising a complex mixture of hydrocarbons and other organic compounds, which serves as the primary raw material for the production of refined petroleum products — including petrol, diesel, aviation fuel, LPG, naphtha, lubricants, and petrochemicals. Crude oil is the world's most actively traded commodity, with global benchmark prices set by Brent Crude (the international benchmark) and West Texas Intermediate (WTI, the US benchmark), while the Dubai/Oman grade is most relevant for Asia-Pacific pricing. As India imports approximately 85% of its crude oil requirements, crude price fluctuations have a direct and significant impact on India's current account deficit, inflation (particularly in fuel and transport costs), the fiscal deficit (through fuel subsidy implications), and the profitability of oil marketing companies, refiners, airlines, and paint manufacturers. For traders and investors on Ventura Securities, crude oil price trends are one of the most important macro variables to monitor for their pervasive impact across multiple Indian equity sectors and the broader economy.