With the increase in oil prices, raw material 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 in the world market supplies several types of crude oil. The chemical composition of crude oil is different from well to well and to facilitate exports, were invented by some standard varieties of oil. For Russia, the Urals and a Siberian Light. In the UK - Brent, Norway - Statfjord, Iraq - Kirkuk, in the U.S. - Light Sweet. It often happens that a country produces two grades of oil - light and heavy. For example, in Iran and that Iran Light Iran Heavy. In Russia, light crude - a Siberian Light, and the Urals - hard. The price of crude oil is considered relative to its cost per barrel.
Barrel translates to English as a barrel. Historically, U.S. oil barrels were measured. On the barrel, as with any off-system unit, a lot of confusion - the standard American barrel is 119.24 liters dry barrel - 115.6 liters. Blue oil barrel (bbl) is 158.98 liters.
Major 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 oil and gas industry Interregional Exchange (MBNTK), established on the basis of the concept of the Ministry of Energy.
On the NYMEX and IPE traded marker species in New York Light Sweet London Brent. Trading on both exchanges are carried out "voice" way, but in recent years are widely used electronic systems. In the major London auction held from 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 for four and a half hours of trading on both exchanges occur simultaneously.
A standard lot in both cases is 1,000 barrels, the minimum price change - 1 cent, but prices themselves are set in dollars and cents per barrel.
Price volatility in the oil market is very high, a dollar difference between the highest and lowest prices of the day - not the limit and not an isolated case. Unfavorable combination of circumstances can lead to significant losses, but the profit potential here is extremely high.
Quotes of the nearest futures Brent and Light Sweet on the whole 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 expiration (performance) contracts, which allows for arbitrage between exchanges.
Oil prices (oil) (exchange and OTC) are determined by two key factors - the current ratio and the expected supply and demand dynamics of the costs. Because accurate data on the current global balance of supply and demand of oil is not a great importance attached to information about changing the stock of oil - the strategic and industrial, political events in 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 nations to stabilize oil prices). The members of this organization are a country whose economy is largely dependent on revenues from oil exports. The main purpose of the organization - control over oil prices.
Trade oil contracts - is trading on the floor of the exchange. However, a group of Japanese oil companies and trading houses plan to create an online exchange for trading oil futures contracts. 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 market capitalization is approximately 400 million yen (3.26 million dollars), said the representative of 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 stock exchanges are planning to attend an investment bank Morgan Stanley and South Korean oil company SK Corp. In the first months of operation the exchange will provide services only to companies that are its founders. According to a Mitsubishi, in the first year of operation is planned to increase annual turnover of exchange up to 200 billion yen (1.640 billion dollars).
Trading oil futures on the stock exchange requires considerable resources. To provide access to trading oil investors do not have large cash resources, our company has developed a tool that allows you to trade oil, having the bill very small amount. Under the terms of trade in oil in our terminal iTrader, traded a 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 USD. You can become a bidder of this tool.
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