Energy, in fact, is the lifeblood of the global economy. The whole world shudder monitors fluctuations in the value of a barrel of oil. Traders also can earn by trading futures on oil, fuel oil, gas, kerosene, gasoline.
Energy futures are presented on two main markets: the International Petroleum Exchange (International Petroleum Exchange, or IPE) and the New York Mercantile Exchange (New York Mercantile Exchange, or NYMEX).
The main suppliers of oil are Russia, the US and Saudi Arabia. Over the past few years, countries such as Nigeria, the United Kingdom and Mexico have taken a significant position in the oil market.
Crude oil is processed through a distillation process. The raw oil composition comprises several components with different boiling points. As the first heat treatment of the most exposed components of light, followed by heavier. In addition to cracking distillation process used to process more valuable oil products. Raw oil is classified in the place of production, the density and the amount of sulfur.
West Texas crude oil is traded in lots of 1,000 barrels, gasoline and fuel oil (heating oil) – for 42,000 gallons, gas – 10.000 MMBTU (million British thermal units). Tickers: crude oil Light Sweet – CL, oil HO, NG gas.
Minimal change of oil prices (CL, NYMEX) – $ 0.01, which corresponds to 10 dollars. Oil is traded in dollars per barrel. Gasoline and fuel oil, which are by-products of oil traded in cents per gallon. Tick Size – 0.01 cents (in reality the price usually changes by 0.05 per cent), which corresponds to $ 4.20 per contract. Gas traded in dollars per MMBTU, tick size of 0.001, which corresponds to $ 10.