Crude Oil, History, Uses
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Crude Oil Home » Crude Oil
History

The history of crude oil supply has been dominated by the time and place of discoveries, with enormous results on the history of the 20th century. Crude oil accounts for 40% of the world’s energy supply and most actively traded commodity contact worldwide.

Characteristics
  • It is the base material that makes gas, diesel, jet fuels and thousands of other petrochemical.
  • It is a mixture of hydrocarbons that exists in a liquid phase in natural underground reservoirs.
  •  Oil and gas account for about 60 per cent of the total world's primary energy consumption.
Uses of Crude Oil
  • There are many products that are derived from crude oil such as gasoline, diesel fuel, jet fuel, bunker fuel and kerosene.
  • This fuels power all the automotive vehicles and engine powered machinery on the planet.
  • It is also used to make fertilizers and pesticides. Nearly all of these products are made from crude oil.
  • Crude oil is used to make other products such as plastics and waxes. These are used in the packaging of frozen foods and other items.
  • It is also used to make tar, sulfuric acid, asphalt, petroleum coke (solid fuel) and paraffin wax.
  • It  is also a main ingredient in the production of synthetic rubbers.
  • It is used in the production of cosmetics and perfumes.
  • It is also used to produce a number of industrial solvents that are used to clean machinery. It is also used in liquid fuels such as butane and propane which are used in home grills.
Influencing Factors

Energy prices can be extremely volatile due to the fact that energy is possibly the most tactical and political product in world. According to a survey, it is said that employment plays a crucial role in demand and supply. When people are employed there is a high demand for oil product and vice versa. With oil's stature as a high-demand global commodity comes the possibility that major fluctuations in price can have a significant economic impact. Unlike most products, oil prices are not determined entirely by supply, demand and market sentiment toward the physical product. Rather, supply, demand and sentiment toward oil futures contracts, which are traded heavily by speculators, play a dominant role in price determination.
Cyclical trends in the commodities market may also play a role. Regardless of how the price is ultimately determined, based on it's use in fuels and countless consumer goods, it appears that oil will continue to be in high demand for the foreseeable future.

Exporter and Importer


OPEC stands for 'Organization of Petroleum Exporting Countries'.  The current Members are Algeria, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates and Venezuela. Likewise, the importing countries are US, India, China,

Why trade crude oil through NDEX:

Contract size: Regular, Mini, Small and Exposure/Intra-day
Low transaction cost: Fixed spread of NPR 6.00 per 1 BBL
Generous leverage: On all products that are clearly detailed on the trade.
Initial margin: Rs.75000 (Regular)
Hedging capability: Can take long or short position from same account
Months: Feb, April, June, August, Oct and Dec.
Seasons: June to September

Trading time:

Daily Open Time 3:45:00 AM
Daily Close Time 2:59:59 AM
 
Conclusion

Crude oil is a commodity that the 21st century inherited from the 19th century, with all of its benefits and drawbacks. Of all of the traded commodities, it has the broadest impact. How the world interacts with the crude oil industry in the years to come will have a wide-reaching impact on the environment, the global economy and our daily lives.
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