Vaseline is a petroleum jelly, it comes from crude oil. Its a hydrocarbon meaning it’s a mix of carbon and hydrogen. The same thing petrol or gasoline is made of just a heavier distillate. It’s an oil. Oil and water don’t mix you can see this if you’ve ever mixed vegetable oil and water. The same principle applies when used on your skin. It doesn’t moisturize but can act as a barrier to lock in moisture.
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