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The small investor is able to invest in a variety of oil stocks. Oil companies drill for oil, refine oil into fuel, like gasoline, and then sell the products to the consumers. The larger companies are fully integrated, and the smaller ones find the oil and gas and refine it.

What crude oil is exactly is a dark, sticky, thick liquid. It is classified as a hydrocarbon, containing carbon and hydrogen. It is flammable and energy is created from burning it. Out of this we get fuel.

Trading is done in units of 1,000 barrels. The barrel contains forty-two gallons per. When you trade in oil, you are involved in an active trading commodity, the most active in the world.

The ten largest oil producing companies in the world today are: Saudi Arabia, Russia, U. S., Iran, Mexico, China, Canada, Norway, Venezuela, and Kuwait. About 240% more is produced than Russia consumes. In contrast, the U. S. Consumes one third more than its domestic production.

Although this type of trading used to be for the wealthy, only, technology has made it easier for the smaller investment to get in on the excitement.

Now that you know a little bit about crude oil, you need an account with a brokerage firm or on line. Do your research on which companies you have interest in, study their charts and analysis, as well as their annual reports, read the financial newspapers, and make a decision on just how much you intend to invest in this risky trading business. This will help in your decision about how many shares or barrels you intend to invest in. If you are new at this, you may need the assistance of a financial advisor. He or she is trained to know the market and advise you accordingly. And when you are ready, have an exciting time investing in oil stocks.

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