The so-called crude oil derivatives can be understood as financial products derived from crude oil. Crude oil itself is a commodity, which has certain volatility and uncertainty in the market. In order to make better use of the investment value of crude oil, many institutions and individuals began to design and promote various derivatives based on crude oil in order to obtain higher profits and better risk control.

There are many kinds of crude oil derivatives, among which futures, options, exchange-traded funds and emergency insurance products are the most important and common. Futures and options are the most common crude oil derivatives. Futures allow investors to buy and sell a certain amount of crude oil at an agreed price in the future, while options give investors the right to buy and sell crude oil in the future, but they are not enforced. Exchange-traded fund is an investment tool similar to stock, which can track the change of crude oil price, and emergency insurance products are derivatives to prevent market risks in the event of major disasters or events in the oil market.

As a financial product, crude oil derivatives also have certain risks. Although better risk control can be achieved by investing in crude oil derivatives, investors may suffer losses when market fluctuations and policy risks increase. However, crude oil derivatives also bring opportunities to investors, who can dig out investment opportunities and get higher returns through monitoring and analyzing the market.