Trading in oil offers one of the best opportunities for most business organizations to explore. It makes one become extraordinary rich for just participating in the black gold trade. Oil trade has been viewed as the best forum and direct path to either extreme riches or poverty. The traders usually take advantages of the market fluctuation of the commodity prices and explore to obtain wealth out of it.

The business requires large initial capital to start. The purchase of the storage tanks transportation cost and even the storage expenses are very expensive for any individual who may wish to begin or carry out the business. This is however the reason behind only having the large multinational companies taking part in this type of trade.

The other cost of maintenance is as well very expensive. This is as a result of the many risks associated with this type of business. The risk of fire outbreak, theft and even the spillage of the product expose the traders to a balancing situation, which may lead to the collapse of the business as a result of the loss incurred.

Oil products are virtually used in most parts of the world and hence it drives the economy either towards long term growth or economic destruction. The industrial revolution led to development and production of different types of machines that used the fuel products to function effectively.

Any change in the prices of this commodity has a greater impact in the economy since it affects every sector of the economy. Since most business enterprises are majorly concerned about the profits they get out of this activity, they do not care too much about the effects of their action to the economy.

The governments have therefore adopted certain regulations that would help curb any malpractice by these business tycoons liken that of increasing the commodity price without proper reason behind the scheme. This move by the government has impacted positively on the growth and stabilization of the economy.

Apart from the benefits enjoyed in this activity, there are several and numerous uncertainty involved in this industry. To begin with the risk of theft and spoilage during the storage and even transportation is a major challenge that affect the marketers. These do happen unexpectedly and usually lead to greater loss to the affected firm.

There is also the existence of the risk of fire which is the most extreme destructive risk exposed to the commodity. In the presence of fire not even a liter of the commodity can be saved or obtained from the menace. This poses a greater threat to the operations of the business companies.

Oil trade is very promising in terms of the revenue to be enjoyed at the end of the trading period. Most people like it but it is also exposed to several market risks which makes it less attractive.

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