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October 18, 2010 DEFINE CRUDE OIL crying(a) crude is also cognise as petroleum. It is the conceptions most actively traded commodity. The largest commercialises are in London, New York, and Singapore. exactly stark naked crude and heat up crude oil color ar brought and sold either over the world. Crude oil come downs in many varieties and qualities, depending on its specific gloominess and sulphur content which depend on where it has been pumped from. Oil-Markets Explained A). forthcoming Contracts: In this type of transaction, the buyer agrees to polish off delivery and the seller agrees to provide a fixed come of oil at a pre-arranged price at a specific location. incoming contracts are only traded on modulate exchanges and are colonised (paid) daily, based on the current determine in the market place. The minimum purchase is 1,000 barrels. B). World terrace mark: Because there are so many unlike varieties and grade of crude oil, buy ers and sellers collect found it easier to refer to a limited number of references, or benchmark, crude oil. Other varieties are then priced at a discount or premium, harmonise to quality Brent is generally certain to be the world benchmark.

According to IPE (International Petroleum Exchange) Brent is utilize to price two thirds of the worlds internationally traded crude oil supplies But if supplies became extremely limited and price swings became exaggerated, a new benchmark would have to be found. C). US Benchmark; In the fall in States, the benchmark is (WTI) West Texas Intermediate. So this room that crude oil sales into the US are unremarkably priced in telling to WTI D). OPEC (Organisation of Petroleu! m Exporting Countries): Known as the OPEC basket Price, this is an amount of 15 different countries. OPEC aims to control the amount of oil it pumps into the market to keep the basket price in spite of manner a predetermined range. Factors contributing to the rise in oil prices A). Hurricane Katrina; Factors contributing to the rises in the short-term have been...If you want to understand a full essay, order it on our website: OrderEssay.net

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