Petroleum : An Important Commodity Of The International Trade Market

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Petroleum is a naturally occurring liquid found in geological formations beneath the planet 's surface. It can be used for many different purposes like construction of roads, fueling automobiles, and heating houses and offices. Humans used a petroleum byproduct as early as four thousand years ago in ancient Babylon to build the walls and towers of the city. Petroleum was not regarded as a power source till recently when byproducts of it were found as efficient fuel. In the late 1800s large deposits of petroleum were found in the United States, and this started an oil boom all over the country. New inventions such as the automobile and the combustion engine increased the demand of petroleum. To fulfill this demand, United States was required to find alternate oil producers. In the middle eastern countries large oil deposits were found which was the perfect solution to fulfil the demand at that time. Oil became the most important commodity of the international trade market. With this new found wealth foreign nationals became richer and started playing crucial role in global economy. Now there is a possibility that the Americans may be being held hostage by foreign oil barons because powers other than the United States are having power over the American economy.

Figure 1. Petroleum Imports from 1920 to 2009. Source: U.S. Census Bureau. “Exports, Imports, and Balance of Petroleum and Non-Petroleum End-Use Category.”
Figure 1 is a data set collected by the United States…

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