Buying the crude oil index involves investing in a financial instrument that tracks the price of crude oil. This index represents the weighted average price of a basket of crude oil futures contracts traded on various exchanges worldwide.
Investing in the crude oil index offers several potential benefits. It provides exposure to the crude oil market without the need for physical storage or transportation. It also allows investors to diversify their portfolios and hedge against inflation, as crude oil prices tend to rise during inflationary periods.