MCX CRUDEOIL AND OVERVIEW

MCX CRUDEOIL

    OVERVIEW

•    Crude oil is a naturally occurring, unrefined petroleum product composed of hydrocarbon deposits in natural underground pools or reservoirs and remains liquid at atmospheric pressure and temperature. Although it is often called "black gold," crude oil has a wide ranging viscosity and can vary in colour to various shades of black and yellow depending on its hydrocarbon composition. Crude oil can be refined to produce usable products such as gasoline, diesel and various forms of petrochemicals.
• 
  
•    Even though most crude oil is produced by a relatively small number of companies, and often located in remote locations far from the point of consumption, trading in crude oil on a global basis has always been robust. Nearly 80% of international crude oil is transported through waterways in large tankers and most of the rest by inland pipelines
• 
  
•    The majority of oil reserves in the world is in the Middle East, at 48 per cent of the known and identified reserves. This is followed by North America, Africa, Central and South America, Eurasia, Asia and Oceania, and Europe.
• 
  
•   OPEC controls almost 40 per cent of the world's crude oil, accounts for about 75 per cent of the world's proven oil reserves, and exports 55 per cent of the oil traded internationally.
• 
  
•    In oil trading, risk management techniques are extremely important for the various stakeholders and participants, such as producers, exporters, marketers, processors, and SMEs. Modern techniques and strategies, including market-based risk management financial instruments like Crude Oil Futures, offered on the MCX platform can improve efficiencies and consolidate competitiveness through price risk management
• 
  
• FACTORS INFLUENCING THE MARKET
•   OPEC output or supply
•   Changing scenarios in oil demand from emerging and developing countries
•   US crude and products inventories
•   Refinery Utilization rate
•   Global geopolitics
•   Speculative buying and selling
•   Weather conditions
• 
  
• Oil prices mixed, US inventory build-up heightens oversupply concerns
•    benchmarks opened the month mixed on Wednesday, following their biggest-   ever quarterly and monthly losses, overshadowed by fears of global   oversupply as data showed a bigger-than-expected rise in inventories in the   United States.
•    Brent crude was down by 21 cents, or 0.8%, at $26.14 a barrel by 0032 GMT,   while U.S. West Texas Intermediate crude was up by 27 cents, or 1.3%, at   $20.75 a barrel.
•   U.S. crude inventories rose by 10.5 million barrels last week, far exceeding forecasts for a 4 million barrel build-up, data from industry group the American Petroleum Institute showed.
  
  
•   Wednesday's opening session left oil prices marooned near their lowest levels since 2002 amid the global coronavirus crisis that has brought worldwide economic slowdown and slashed oil demand. Crude futures ended the quarter down nearly 70% after record losses in March.
• 
  The bearish mood in the market wasn't improved by a rift within the Organization of the Petroleum Exporting Countries (OPEC). Saudi Arabia and other members of OPEC were unable to come to an agreement on Tuesday to meet in April to discuss sliding prices.
•    "It is very unlikely that OPEC, with or without Russia or the United States, will   agree a sufficient volumetric solution to offset oil demand losses," BNP   Paribas  analyst Harry Tchilinguirian said in a report issued on Tuesday.
   
  

  
  

  
  

  
  
• 
  

•