Saturday, October 22, 2011
Top 5 Most Traded Commodities in The World
When economists say commodities, they mean goods for which there is demand, but which are supplied without qualitative differentiation across the market. Commodities are usually produced by a large number of companies around the world. Lumber, oil, sugar and electricity could all be considered commodities, while Levi's jeans would not be, as consumers consider them to be distinct from jeans sold by other firms.
There are a great number of both agricultural and industrial commodities now being traded in the commodities market. And here is the list of top 5 most traded commodities in the world:
1. Crude Oil
Crude oil or also known as petroleum is the term for ‘’unprocessed’’ oil, the stuff that comes out of the ground, which is in fact the most traded commodity in the world. Territories in the Middle East export 58% of all crude petroleum. Saudi Arabia exports over twice the US dollar value of any other territory, measured in net terms. The United Arab Emirates has the highest per person export earnings from crude petroleum. Other important exporters of crude oil are Norway, Venezuela, Nigeria and Mexico.
Amazingly coffee is the second most traded commodity in the world. It is estimated that 1.6 billion cups of coffee are drunk worldwide everyday! It is produced in Latin America, South East Asia and Africa and the main consumers are United States and Europe. Today Brazil is responsible for about a third of all coffee production, making it by far the heavyweight champion of the coffee-producing world. Indonesia and its archipelago is most notable as the world’s largest producer of robusta beans, which is my favorite one.
3. Natural Gas
Natural gas is traded a lot because it is the only thing used everywhere from cooking to heating water in winters. It has a volatile marketing style because of its price fluctuation. Russia is the largest exporter of natural gas. It is interesting to note that Canada is the second major exporter followed by Norway. The world’s largest proven natural gas reserves are in Russia, Iran, Qatar, Saudi Arabia and United Arab Emirates.
The fourth most traded commodity in the world is gold. It has always been valuable, the reason is may be the beautiful color or maybe it is rare, for many women may be it’s the important part of them or anything else. Additionally, to inform you South Africa no longer holds the title of the world’s largest gold producer. Currently China is the world’s top gold producing country. Next goes Australia.
5. Brent Oil
Brent oil is the second most traded oil in the market after crude oil, and 5th most traded commodity in the list. This oil is basically taken from the North Sea and Norway and areas like Europe and Africa use Brent oil more as compared to crude oil. It is used to price two thirds of the world's internationally traded crude oil supplies. According to the CIA World Factbook estimate for 2010 the world consumes about 87 million barrels of oil each day.