Hi Traders, Investors and Speculators of the Charts ๐๐
Oil gets a bad rap these days, but the stuff is actually quite incredible. Many people think of crude oil as a thick, black liquid that is used to source our unquenchable thirst for gasoline and suffocate marine life. Although this isn't untrue; the reality is that each barrel of oil is refined to be used in a variety of applications that includes fuel, cosmetics, plastics, rubber, and candle wax.
Recently I saw many news outlet's post on the price of crude oil at their economic section. the sentiment was the same - buy. The reasoning was that oil will become more scarce in coming weeks and therefore, the demand will increase. Unsurprisingly, the price of oil has gone DOWN. These are usually coordinated traps in the market, and it's best to counter trade when the media is going with one sentiment.
The price of oil is declining seriously, with strong bearish pressure at $82. We see a nasty double top in the weekly, and I'll be looking for an entry between the support zone pointed out on the chart.
So, why consider oil as an investment?
The truth is, oil isn't going anywhere, any time soon. This is a commodity with a broad use case, and if you plan your trades, low risk trades with good profits can be made.
Here is everything that can be made from just one barrel of oil:๐ข
๐ Enough gasoline to drive a medium-sized car over 450km (280 miles)
๐ Enough distillate fuel to drive a large truck for almost 65km (40 miles)
โฝNearly 70 kWh of electricity at a power plant generated by residual fuel
๐ฅ About 1.8 kg (4 lbs) of charcoal briquettes
๐ Enough propane to fill 12 small (14.1 ounce) cylinders for home, camping or workshop use
๐ง Asphalt to make about 3.8 L (one gallon) of tar for patching roofs or streets
โ Lubricants to make about a 0.95 L (one quart) of motor oil
๐ Wax for 170 birthday candles or 27 wax crayons
But thatโs not all. After producing all of the above products, thereโs also enough petrochemicals leftover to be used as a base for one of the following:
๐ฉโ๐งโ๐ฆ 39 polyester shirts
๐ฉโ๐ฆฐ 750 pocket combs
๐ 540 toothbrushes
๐งบ 65 plastic dustpans
โญ 23 hula hoops
๐ง 65 plastic drinking cups
๐ฅ 195 one-cup measuring cups
โ 11 plastic telephone housings
๐ฅ 135 four-inch rubber balls
The above serves as one example of how a single barrel could be used, but hereโs a list of many other oil applications. It includes everything from guitar strings to antihistamines. Whatever your opinion is on fossil fuels, itโs still pretty astonishing what can be produced out of each barrel of oil.
Here's a nice infographic to visualize :
_______________________
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We thank you for your support !
CryptoCheck
Oil gets a bad rap these days, but the stuff is actually quite incredible. Many people think of crude oil as a thick, black liquid that is used to source our unquenchable thirst for gasoline and suffocate marine life. Although this isn't untrue; the reality is that each barrel of oil is refined to be used in a variety of applications that includes fuel, cosmetics, plastics, rubber, and candle wax.
Recently I saw many news outlet's post on the price of crude oil at their economic section. the sentiment was the same - buy. The reasoning was that oil will become more scarce in coming weeks and therefore, the demand will increase. Unsurprisingly, the price of oil has gone DOWN. These are usually coordinated traps in the market, and it's best to counter trade when the media is going with one sentiment.
The price of oil is declining seriously, with strong bearish pressure at $82. We see a nasty double top in the weekly, and I'll be looking for an entry between the support zone pointed out on the chart.
So, why consider oil as an investment?
The truth is, oil isn't going anywhere, any time soon. This is a commodity with a broad use case, and if you plan your trades, low risk trades with good profits can be made.
Here is everything that can be made from just one barrel of oil:๐ข
๐ Enough gasoline to drive a medium-sized car over 450km (280 miles)
๐ Enough distillate fuel to drive a large truck for almost 65km (40 miles)
โฝNearly 70 kWh of electricity at a power plant generated by residual fuel
๐ฅ About 1.8 kg (4 lbs) of charcoal briquettes
๐ Enough propane to fill 12 small (14.1 ounce) cylinders for home, camping or workshop use
๐ง Asphalt to make about 3.8 L (one gallon) of tar for patching roofs or streets
โ Lubricants to make about a 0.95 L (one quart) of motor oil
๐ Wax for 170 birthday candles or 27 wax crayons
But thatโs not all. After producing all of the above products, thereโs also enough petrochemicals leftover to be used as a base for one of the following:
๐ฉโ๐งโ๐ฆ 39 polyester shirts
๐ฉโ๐ฆฐ 750 pocket combs
๐ 540 toothbrushes
๐งบ 65 plastic dustpans
โญ 23 hula hoops
๐ง 65 plastic drinking cups
๐ฅ 195 one-cup measuring cups
โ 11 plastic telephone housings
๐ฅ 135 four-inch rubber balls
The above serves as one example of how a single barrel could be used, but hereโs a list of many other oil applications. It includes everything from guitar strings to antihistamines. Whatever your opinion is on fossil fuels, itโs still pretty astonishing what can be produced out of each barrel of oil.
Here's a nice infographic to visualize :
_______________________
๐ขFollow us here on TradingView for daily updates and trade ideas on crypto , stocks and commodities ๐Hit like & Follow ๐
We thank you for your support !
CryptoCheck
ืขืกืงื ืคืขืืื:
Still looking to get OIL a bit cheaper, under $70 seems reasonable