By Admin 
Crude Oil: As tensions are increasing in the Middle East, the prices of crude oil and natural gas are also increasing. But its impact is not limited to just the fuel pump but is being felt far and wide. While most people are associating crude oil with petrol and diesel, the reality is much scarier than this. Actually, oil is used extensively in countless industries and employment products. Let us know where it is used and how this tension will affect the markets.
Direct cost pressure on paint industry
The paint and coatings industry is one of the sectors most directly impacted. More than half of the raw materials used in making paint are petroleum based. As crude oil prices rise, production costs increase significantly. Due to this, companies either have to increase prices or suffer losses.
Shock to tire and rubber sector also
The tire industry depends heavily on petroleum products such as synthetic rubber and carbon black. These materials are necessary for making vehicle tyres. When crude oil becomes expensive, the prices of tires are also bound to increase. This affects both the automobile manufacturer and the customer.
Rising costs in the packaging industry
Plastic packaging is used in everything from food items to e-commerce delivery. These are made from petrochemical products. Increase in crude oil prices increases the cost of plastic granules.
impact on aviation industry
Airlines are the first to be hit by rising oil prices. Aviation turbine fuel is made from crude oil. This accounts for approximately 40% of an airline’s operating costs.
Pharmaceutical and medical sectors also affected
Even the healthcare sector is not untouched by it. Petrochemical based plastics and chemicals are used in making many pharmaceutical products. Increase in crude oil prices may increase production costs.
Where is crude oil used?
Apart from fuel, crude oil is a major raw material in many industries. It is used to make plastics found in everyday items such as bottles and electronic devices. Petroleum based chemicals are very important for making fertilizers and pesticides in farming. Along with this, there is a lot of dependence on things made from crude oil in the cosmetic industry.
Even the clothes we wear are made from petroleum based fibres. Apart from this, lubricants like engine oil and grease, which help the machines to run properly, are also made from crude oil.
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