With rising oil prices, the commodity market has become the most attractive market for financial investors. In the world of trading financial instruments and a variety of petroleum products is relevant because of its value and volatility allows investors to make money even at the minimum market fluctuations.
Futures for crude oil increased significantly in volume, which respectively attracted many new investors.
Grades of oil in the world very much. Almost every oil producing country supplying the world market several varieties of oil. Chemical composition of oil differs from well to well and to facilitate exports, were invented by some standard varieties of oil. For Russia, the Urals, and this Siberian Light. In the UK - Brent, Norway - Statfjord, Iraq - Kirkuk, in the U.S. - Light Sweet. It often happens that the country produces two grades of oil - light and heavy. For example, in Iran is Iran Light and Iran Heavy. In Russia, light crude - a Siberian Light, and the Urals - hard. The price of crude oil is considered on its cost per barrel.
Barrel translated from English as a barrel. Historically, the U.S. oil was measured by buoys. Per barrel, as with any Common Units, a lot of confusion - the standard U.S. barrel = 119.24 liters, dry barrel - 115.6 liters. Blue oil barrel (bbl) is 158.98 liters.
The largest oil exchanges are the New York Mercantile Exchange (NYMEX) and London International Petroleum Exchange (IPE). Oil contracts are traded on the Singapore and SIMEX (Singapore International Monetary Exchange). Perhaps in the near future Petroleum Exchange opens in Russia. Most recently received a license and will soon begin trading Interregional Exchange oil and gas industry (MBNTK), established on the basis of the concept of the Ministry of Energy. On the NYMEX and IPE traded marker class in New York Light Sweet London Brent. On both exchanges trades are carried out "voice" way, but in recent years are widely used electronic systems. At the same time in London, the main trading place with 10:02 to 20:13 (12:02-22:13 in Kiev), and in New York - from 9:00 to 13:30 (16:00-20:30 in Kiev). This means that within four and a half hours of trading on both exchanges occur simultaneously.
The standard lot in both cases is 1000 barrels, the minimum step change in price - 1 cent, but prices themselves exposed in dollars and cents per barrel.
Price volatility in the oil market is very high, $ 1 difference between the highest and lowest prices of the day - not the limit and not an isolated case. The unfortunate combination of circumstances, can lead to significant losses, but potential profits are extremely high.
Quotes nearest futures Brent and Light Sweet as a whole is fairly well correlated, but the spread between them is constantly changing due to local differences in American and European markets, but also because of different time of expiration (performance) contracts, which allows for arbitrage operations between exchanges.
Oil prices (oil) (exchange and OTC) are determined by two key factors - the current and anticipated the demand and supply, the dynamics of costs. Because accurate data on the current global balance of supply and demand of oil there is great importance attached to information about changes in stocks of crude oil - the strategic and industrial, political developments in the oil-producing regions that may affect the dynamics of production, growth forecasts for the economy, which affects the dynamics of consumption and, as well as the strategy of OPEC (Organization of Petroleum Exporting Countries cartel, established oil-producing powers to stabilize oil prices). The members of this organization is a country whose economy is largely dependent on revenues from oil exports. The main purpose of the organization - control over oil prices.
Trade in oil contracts - this trade on the floor of the exchange. However, a group of Japanese oil companies and trading houses plan to create an online exchange for trading futures contracts in oil. The new trading platform, which will be called J-Oil Exchange, can begin its work in the near future. The joint venture will be registered in Singapore. Its capitalization will be approximately 400 million yen (3.26 million dollars), said a representative Mitsubishi Corp. Among the founders of the new Internet exchanges will be companies like Showa Shell Sekiyu KK, Japan Energy Corp, Mitsubishi Corp, Mitsui & Co Ltd. In addition, the establishment of the exchange plan to attend an investment bank Morgan Stanley and South Korean oil company SK Corp. In the first months of work exchange will provide services only to companies who are its founders. According to a Mitsubishi, in the first year of work is planned to bring an annual turnover of the Exchange to 200 billion yen (1,640 billion dollars).
Trading oil futures on the stock exchange requires considerable resources. To ensure access to oil trade investors do not have large cash resources, our company has developed a tool for trading in oil, having the account very small amount. Under the terms of trade of oil in our terminal iTrader, traded minimum lot of 100 barrels, and the required initial margin of 5% of the transaction. If we assume that the price of a barrel of oil, when the transaction is equal to 60,0 UAH. Then, having to account only 300 UAH. Can become a participant of this tool.
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