5 Most Traded Commodities In The World
The nation’s economy is often dependent majorly on the export and import industry. The main reason why the China economy is booming like a fire is because of its export success. The whole world market acts on the mutual symbiosis basis. For instance, there are some countries that are rich in natural gas while the others make good coffee. In such cases, it is the best to import such specialties from those countries rather than producing them by yourself. Importing those products can be more cost effective than the production cost. The availability of raw materials and the other aspects play an important role here.
An ample of commodities are traded globally but there are a few of them without which the world trading market cannot be imagined. These commodities feature in the world trading market more often than not. Commodities like coffee, natural gas, crude oil are some of the necessities in the world market and several countries specialize in them. Not every country can produce them and hence, it becomes a necessity to import such goods. This is what makes these commodities as the world’s most traded commodities.
Here are the top 5 most traded commodities in the world:
1. Crude Oil:
Crude oil is one of the most traded commodities in the world for more reasons than not. Crude oil is considered to be the major source for the fossil fuels and the whole world derives energy needs from crude oil. The biggest of the producers of crude oil are Saudi Arabia, USA and Russia. They export crude oil to apparently all parts of the world and earn a fat check.
Coffee is the element of our lifestyle. Friends meet up over a cup of coffee; meetings usually take place with a coffee and so on. Hence, coffee is one of the most traded commodities in the world. Around 2.25 billion cups of coffee are consumed around the world each day. This is a whopping figure for the consumption of a commodity. USA and Europe are the biggest customers when it comes to coffee. The major coffee producers are in South America and Africa.
3. Natural Gas:
There have been several efforts towards moving the world into using renewable energy sources but natural gas is still the most consumed commodity when it comes to energy. It is used in cooking, heating and several other purposes. US and Russia produce the biggest share of natural gas in the world.
Jewelry has been a common phenomenon for ages. It usually involves ornaments made of gold and hence gold is one of the most traded commodities in the world. Gold is also a commodity of huge interest for the investors.
5. Brent Oil:
The majority of Brent oil is extracted from Norway and the North Sea. Europe and Africa are the biggest consumers of Brent oil. The export business of Brent oil in Norway is one of the biggest reasons why it is a strong economy in current market.