Is crude oil worth investing in? What are the precautions for investing in crude oil?

　　Crude oil is a non-renewable resource,and as the quantity dwindles,the price will increase day by day,which is a good thing for investors.Oil is not only an energy source,but also a strategic energy material.While these were peaceful times,local wars were inevitable,due in large part to competition for oil resources.Judging from the current situation,the international commodity market is complicated,but crude oil is currently one of the most important commodities.At the same time,crude oil is also of great significance to gold,because if the price of crude oil rises,it will promote inflation in the market,thus highlighting the value of gold to inflation.Crude oil is the king of black gold,non-renewable energy and a very good investment.

　　If you want to invest in crude oil,you must pay attention to maintaining a good mentality.Good psychological quality can enable investors to exert stronger thinking ability,and maintaining a healthy investment psychology is the premise for investors to obtain correct market understanding and practice.Investors should face changes head-on,analyze and judge in a timely,objective and accurate manner,formulate more scientific and reasonable operating strategies,and maintain a rational and objective attitude to adapt to the ever-changing market.

　　Crude oil investors should pay attention to overcoming the psychological misunderstanding of pathological investment,avoid blindly following the trend,and also avoid hesitation,not knowing what action to take.At the same time,investors must be careful not to generate endless desires,and not to treat the financial market as a casino.If it is regarded as a casino,then in the actual operation process,there will be various psychological misunderstandings,which will cause investors to make mistakes and cause serious loss of account funds.

　　Crude oil,also known as black gold,is a liquid or semi-solid combustible substance.Like coal and natural gas,it is a non-renewable fossil fuel and one of the important primary energy sources in the world.It is a mixture of different hydrocarbons with a very complex composition,mainly including oil(hydrocarbons),asphaltenes(dark brown or black brittle solid substance),gums and carbonaceous(non-hydrocarbons).

　　The physical properties of crude oil vary by origin and reservoir,and there is no fixed chemical composition and therefore no fixed physical constants.Generally speaking,the density of crude oil is 0.8~1.0g/cm3,the viscosity range is very wide,the freezing point difference is also very large(-60℃~32℃),and the boiling point range at room temperature is above 500℃.Soluble in various organic solvents,insoluble in water,but can form emulsion with water.

　　Although the basic composition of crude oil is similar,there are many types of crude oil produced in different origins and formations.The structures and proportions of various hydrocarbons in crude oil from different origins vary greatly,among which linear paraffins,naphthenes and aromatic hydrocarbons are the main components,and their proportions usually reach more than 90%.However,the content of different hydrocarbons tends to vary widely,and the non-hydrocarbon components,i.e.sulfur-containing compounds,nitrogen-containing compounds and oxygen-containing compounds,are very small.When crude oil is mined,it also contains metal salts,mainly a mixture of chlorides such as sodium,calcium and magnesium.The salt content is generally 0.02%to 0.055%.Therefore,crude oil extracted from the ground must be dehydrated and desalinated before it can be processed.

　　Crude oil is a heterogeneous commodity,and the quality of crude oil from different origins tends to vary widely.Therefore,it is difficult to standardize crude oil like industrial products such as metals,and the diversification of crude oil quality is also reflected in crude oil production,trade,processing and pricing.

　　Crude oil has investment value.Crude oil is the largest commodity and is known as the"blood of industry".Its intrinsic value is related to the industrial modernization of all mankind.However,since 2014(June 2015),oil prices have been restrained by a strong dollar and local U.S.crude supplies and have fallen below their own value levels,with undervaluation presenting ideal value investment opportunities.

　　In the investment demand in the international market,crude oil accounts for about 40%of the world's basic energy supply.Thus,crude oil leads the global energy market.High market share and broad industrial demand make crude oil the most active species in global trade and the most important strategic reserve.In the early 1970s,the crude oil market experienced short-term but huge price swings.In just 6-18 months,the crude oil market has experienced two extreme trends;first,prices more than tripled,then plunged by nearly two-thirds.In addition,suppliers in the world crude oil market mainly include the Organization of Crude Oil Exporting Countries(OPEC)and non-OPEC countries.OPEC countries own most of the world's proven crude oil reserves,and their production and price policies have a profound impact on world crude oil supply and prices.Non-OPEC countries exist primarily as price takers and adjust output based on prices.

　　The United States is a superpower in oil consumption.Therefore,the importance of the crude oil supply and demand pattern is the same as that of the U.S.economy,which has the most important impact on the global pattern.

　　At present,there are several ways to invest in crude oil,namely account crude oil,crude oil futures,and crude oil spot.Account crude oil is an investment trading product that is provided to individual customers to buy and sell crude oil shares in US dollars by calculating the shares without withdrawing physical crude oil.When customers expect crude oil prices to rise,they can earn the difference by buying first and then selling.

　　Crude oil futures are the most important type of oil futures.At present,there are four important crude oil futures contracts in the world:the light sweet crude oil of the New York Mercantile Exchange(NYMEX),namely the"West Texas Intermediate Oil"WTI futures contract,the International Petroleum Exchange(IPE)of London.High Sulfur Crude Oil Futures Contract,Brent Crude Oil Futures Contract and Singapore Exchange(SGX)Dubai Sour Crude Oil Futures Contract.

　　In addition to crude oil futures,other oil futures include heating oil,fuel oil,gasoline,light diesel oil,etc.

　　Crude oil spot investment transaction refers to the transaction in which buyers and sellers settle physical crude oil immediately or in a short period of time in accordance with the agreed payment method and delivery method according to the demand for physical crude oil and the purpose of selling physical crude oil.In spot trading,the physical exchange and circulation of crude oil is accomplished simultaneously with the transfer of ownership of the commodity.Therefore,crude oil spot trading is a direct manifestation of the operation of crude oil commodities.

　　When investing in crude oil,you must pay attention to your own mentality and do not blindly follow the trend.The spot market is passively affected by many complex factors,among which the follow-up psychology of investors has a great influence on the market.Investors with this mindset are also very afraid of being left behind when they see others buying or buying one by one.They also buy or sell following the trend without knowing it.But these investors can be fooled by malicious people who make waves in the market,so investors should build their own trading awareness rather than follow the will of others.

　　It's natural for investors to get a return on their investment,but it shouldn't be too greedy.Sometimes investor failure is caused by excessive greed,so be careful not to be too greedy.