{"id":1541,"date":"2022-03-09T08:00:00","date_gmt":"2022-03-09T13:00:00","guid":{"rendered":"http:\/\/aky.pbv.mybluehost.me\/?p=1541"},"modified":"2022-08-24T10:50:22","modified_gmt":"2022-08-24T14:50:22","slug":"oil-futures","status":"publish","type":"post","link":"https:\/\/aky.pbv.mybluehost.me\/oil-futures\/","title":{"rendered":"Oil Futures – The Complete Guide With Specifications"},"content":{"rendered":"\n

The first thing that many people imagine upon hearing the term \u201ccommodity\u201d is often crude oil. The reason for that is crude oil\u2019s popularity. It touches almost every industry in the global economy and has massively contributed to shaping the world as we know it. It affects all our day-to-day activities and is present in everything around us. Although the world is now actively seeking ways to turn to sustainable and green resources, crude oil is expected to continue holding its leading position in the commodity market for the long term.<\/p>\n\n\n\n

Oil-related events dominate global news on a daily basis. From the largest IPO in history, through the constant volatility and bouncing liquidity, to international trade wars and military conflicts \u2013 oil has been a mainstay in the most significant events of the last few decades. However, although the commodity is so popular, it remains a hard-to-predict instrument that investors often struggle to trade successfully.<\/p>\n\n\n\n

To become fully prepared and educated to trade crude oil futures successfully, you should first start by understanding the basics of the commodity. That way, you will be able to explain the key drivers of the price and make better predictions and more accurate analyses. So, let\u2019s not waste more time and explore the world of the most widely-recognized commodity on a global scale \u2013 crude oil.<\/p>\n\n\n\n\n\n

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Getting to know Oil Futures<\/h2>\n\n\n\n

Crude oil is everywhere around us. When you turn on your light, when you cook your dinner, when you drive your car, even when you choose your clothes \u2013 all of these everyday activities are related to crude oil. But how is that?<\/p>\n\n\n\n

Living organisms that died millionths of years ago decomposed over time and mixed with the soil. Under various external factors such as rain, wind, and sunlight, they transformed themselves into so-called \u201cfossil fuels.\u201d Coal, gas, and crude oil \u2013 all of these are examples of popular fossil fuels. They are found deep below the ground surface in the various layers of the Earth. Crude oil, for example, is mostly present in sedimentary rocks in the Earth\u2019s crust. Over time, the mix of different organic molecules left from dead marine life combined with sediment, and under the influence of other natural factors, formed crude oil. However, crude oil is not always the same \u2013 its composition may vary, depending on its geo-location.<\/p>\n\n\n\n

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Usage of crude oil products<\/strong><\/figcaption><\/figure><\/div>\n\n\n\n

Crude oil can be extracted from the ground in three main ways. The first one is called \u201cprimary recovery\u201d and is relatively more straightforward when compared to the others. It is applied when, under the influence of ground pressure, the oil has naturally risen to the surface and can be directly collected. The next method is called \u201csecondary recovery.\u201d It requires an injection of water or gas into the oil reservoir to move it to the surface for collection. The third one is called \u201cEnhanced Oil Recovery\u201d (EOR) and is also based on the use of additives (water, gas, or polymers) to affect the structure of the oil reservoir and make it flow smoothly to the surface for collection. While primary recovery usually collects 10% of the oil in the reservoir, secondary recovery accounts for 20% – 40%. EOR is the most efficient methodology as it recovers from 30% to 60% of the reservoir\u2019s supply.<\/p>\n\n\n\n

Today, crude oil can be found anywhere \u2013 from the production of gasoline, diesel, and kerosene, through the textile industry, cosmetics, steel, tires, and fertilizers production, to plastics, asphalt, sunscreen, and even smartphones. In fact, when combined with other chemicals and raw materials, crude oil is a base for more than 6 000 different products. However, although the resource is so important and widely adopted, it is worth noting that it is not ready for direct usage. First of all, crude oil has to be refined and separated into multiple petroleum products, all of which have different applications.<\/p>\n\n\n

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Trading Crude Oil Futures Explained - How to trade it in 2023?<\/div><\/div>
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