For global economy, nothing is more political as well as significant than crude oil, which contributes majorly to the cost of productions. That’s why we call it ‘lifeblood of economy’.
The commodity’s price has seen massive volatility, especially since the beginning of 2000. In 2000 a bull rally started from $25 a barrel and saw the peak of $147 in 2008 — a multifold rise.
2008 was the year of subprime loan crisis and prices fell like nine pin and touched a low of $32 per barrel. People learned their lesson and since then hedging activities increased and futures role have widened significantly.
