Trading in oils is very lucrative business to conduct, it perceived to only belong to the rich and wealthy merchants within the society. The oil trade has high returns especially when it comes to the returns. The traders are able to buy the commodity at low prices store the product and later sell it at a price higher than the purchase price. They usually take advantage of the market fluctuation of the commodity prices in order to maximize their revenue.

The startup cost for the business is extremely high since one has to buy the large costly storage tanks he or she can be able to store the commodity as the waiting continues for the market prices to hike. The commodity itself is very expensive and therefore it requires a lot of money for initial purchase in large quantities.

These companies may opt to form different trading blocks for their products in order to assist them control their markets effectively. They form groups in the form of cartels which assist them operate effectively across the borders sell their products without any discrimination and interference from the governments of these economy.

This commodity is very essential for any economy that has been industrialized. The industrialization has created a good demand for its products in the world. This has led to the tremendous increase of its prices over the last few years. This has made the trade more exclusive to participate in.

These cartels assist the traders in creating a conducive environment for the activities of the marketers of this commodity. However, the marketers and suppliers of this commodity has been able to over exploit the markets leading to several and higher increase in the fuel prices thereby attracting the attention of the government authorities.

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.

This makes it very essential when it comes to the economic growth. By doubling the prices of this commodity the prices of other goods produced in the economy has to shoot very high to neutralize the effect of this move. Once the prices increase the standard of living is deteriorated since consumer will have to spend more of the constant income to maintain their level of consumption.

With this in mind the government agencies have adopted various measures to such as the commission that overlooks and sets the prices for this essential commodity to enhance stability and economic growth. The commissions mandate is to liaise with the oil marketers to ensure that their interests are also considered when setting the prices.

The cost of starting the business is very high and so that of managing and operating the enterprise is as well very high. This requires a proper insurance cover so as to get the compensation in case of either of the risks happen.In the business world oil trade has the best and the wider markets which is found in every part of the world. This is because of the production of the fuel driven industrial products. Therefore there is a greater opportunity for the marketers of this commodity.