Today, oil is a critical component in the global economy. It's not only the raw material for the production of many synthetic materials, without which modern man can not imagine my life, but also acts as a fuel and thus needed to release everything. Many are interested in trade oil and gold. How to trade oil and why it is so important the price of this fuel, we will discuss in today's article.
Oil is not only the key elements of the global energy system, but also one of the most popular trading instruments. In the news often talk about oil prices as the reasons for the problems. So sooner or later any person the question arises, how now trading oil and is it possible to earn some money. Already in the process of initial data collection and analysis, it is clear that quotations on this resource is extremely sensitive to world events. And it makes understanding how now trading oil, even more important, because it gives the idea of what is happening on the planet. Besides speculation on the volatility of the price of «black gold” often there are not just exciting but also profitable occupation.
Oil is a natural mineral that looks like an oily black liquid with a specific smell. It consists of a complex mixture of hydrocarbons. There are several grades of oil. They differ in the composition. To facilitate oil exports were set certain standards. Often the assignment of oil grade associated with the Deposit where it is mined. From the latter depends on the presence of impurities, the sulphur content and the presence of different alkanovich groups. On the world market there are the following oil grades:
Recommended
Competition – a concept inherent in a market economy. Every participant in the financial and commercial relations, seeks to take the best place in the environment where it must operate. For this reason, there is stiff competition. The struggle ...
The mayor: powers and duties. Elections of the mayor
Normal functioning of all systems of the settlement, competent and timely execution of tasks in the sphere of economic, social and other areas of development is impossible without control of the mayor. But how voters can evaluate the quality of work ...
Francisco Franco: biography and political activities
When the civil war began in Spain, General Francisco Franco (Francisco Paulino of Hermenegildo Teodulo Franco Bahamonde - full name) celebrated its arakatzailea, but he seemed already tired of life and much older than his years. To unpresentable appe...
As we have seen, the different varieties differ in their quality characteristics. So the price for them may not be the same. It is formed in the same way as any other commodity based on supply and demand. The most important parameter of this fuel is its density. Light varieties are considered more valuable. This is due to the fact that one can obtain more light oil products such as gasoline. Another characteristic is the sulfur content.
This abundance of varieties makes it difficult to understand how oil is now trading. To facilitate analysis using the reference marks. For Europe – Brent, for the United States – West Texas Intermediate or North Alaskan. Within OPEC before the reference was used Arabian oil. However, inside that organization uses a “basket” of the seven varieties. As for oil from Russia, it is exported under four brands. The most famous of them is the Ural.
Consider all about oil.
The oil Trade until the 1970s was not so profitable business as it is now. A barrel cost about three American dollars. However, the price rebounded sharply after the announcement of the embargo on the export of Arab oil that occurred in 1973. New price was $ 12.
Another sharp rise occurred in 1981. this year was the Iran-Iraq crisis. The price rose from US $ 14 to 35.
Oil is called “sweet” if the sulfur content in it is low. Such varieties do not require additional costs for processing. Accordingly, “sour” consider oil with a high sulfur content. Such names are connected with the fact that until the late nineteenth century to determine the quality of black gold tried it experts to the taste.
Quotes of the fuel on the new York stock exchange indicate in dollars per barrel, but the oil – in cents per gallon.
The Actual supply is specified in the contract volumes is very rare. Only 1% of the contracts is not for speculation on the stock.
Until the 1970s years, the industry was highly monopolized, so prices were quite stable. The market was long-term contracts. However, such a system was unstable and fell apart at the first crisis. Considering how oil is traded now, it is possible to allocate the following methods:
Most oil is traded on the new York and London exchanges. The standard volume of the contract amounts to about 1,000 barrels. In the OTC market, standards are not regulated.
There are about 200 varieties of this fuel. Those that are standard in certain regions are considered to be highly liquid. Competition for him on the exchanges is almost perfect. Therefore, speaking about how oil is traded now, we are talking primarily about the reference varieties. The cost of the other is usually calculated in relation to them, the exact formula is specified in the specific contract for the purchase or sale. Also take into account the cost of transportation.
Quotes on the considered mineral fuels are determined not only by economic laws, and geopolitical conditions. Russia is very dependent on oil prices. If they fall, the ruble depreciates. Exactly the same happens to the U.S. dollar.
Article in other languages:
Alin Trodden - author of the article, editor
"Hi, I'm Alin Trodden. I write texts, read books, and look for impressions. And I'm not bad at telling you about it. I am always happy to participate in interesting projects."
Related News
The main rivers of Tatarstan: a brief description, photo
the Republic of Tatarstan is characterized by a large number of rivers. When you consider everything, even the smallest, their number reaches about three thousand. The type of food is mostly mixed. In the spring of the river of th...
About how mating turtles and land turtles
the Question of how turtles mate, interested in many people. Even those who keep these animals as Pets, do not always know how to determine the sex of reptile. What can I say about the pairing!a Short description of the detachment...
Common trout: description, characteristics and interesting facts
What kind of fish common trout? Where she lives? What of life and what it eats? The answers to these and other questions, see our publications.what fish include common trout?Trout-the largest fish in the salmon family. Individuals...
Deciduous forests: characteristics, topography, plants and animals
the Zone of deciduous forests located on the territory of Manchuria, the Far East, within the temperate zones of Europe, Eastern China, North America. Also it affects the southern part of South America and some parts of Central As...
Abbas Abbasov: the biography of a centenarian Azerbaijani politicians
Policies in the East lives in an environment of constant tension and at any time can be brought down from the heights of power on the bottom. In the countries of the former USSR is aggravated by the old traditions of the represent...
Death valley on the Kamchatka Peninsula is a unique landscape complex (photo)
Kamchatka on the map of Russia located in the North-Eastern part of the country. From the East it is bordered by the Pacific ocean and the Bering sea in the West – the sea of Okhotsk. The nature of Kamchatka is amazing and b...
Comments (0)
This article has no comment, be the first!