Crude Oil Overview
Crude oil is an unrefined petroleum product that is naturally occurring from hydrocarbon deposits and a few other organic materials. It is a major energy source and the primary feedstock for the production of various fuels, including gasoline, diesel, and jet fuel.
Global Production and Reserves:
The top oil-producing countries include the United States, Saudi Arabia, Russia, Canada, and China. These countries possess significant reserves of crude oil, although the exact figures vary over time due to exploration and extraction activities.
- United States14.5%
- Saudi Arabia12.1%
Consumer:
- Uniter State: 20.3%
- China 13.2%
- India 4.6%
5-year historical Crude oil price chart of crude oil in USD:
What is crude oil trading?
Crude oil trading is a commodity product that can be traded in the Indian market on the MCX (Multi Commodity Exchange), where prices move based on the underlying which is US oil price fluctuation. Crude oil is traded on the MCX (Multi Commodity Exchange) in derivative forms, which are futures and options.
Every week, crude oil has inventory data that has a significant impact on the oil market and its prices. Here are some key points to understand the impact of crude oil inventories:
- Crude oil inventory effect
- Supply and Demand Dynamics
- Price Volatility
- OPEC and production decisions
- Market sentiment and speculation
- Storage Capacity and Costs
- Economic Outlook
How much capital required for crude oil trading?
- Today market price is 6050
- For crude oil future its required to have around 1,90,000
- For crude oil mini its required to have around 19,000
- Margin may vary as per the price change in crude oil
How to do crude oil trading?
- Learn what moves crude oil trading
- Read long term chart
- Understand the price behaviour
A few details about crude oil trading:
- Lot size: 100 qty.
- The total value Span margin is 30% approx.
- Expiry: monthly expiry
- charges for 1- transaction is 200 Rs approx..
- MCX market timing is 9:00 a.m. to 11:30 p.m. | during sun outage closing time is extended to 11:55 pm..
MCX Crude oil mini: which was introduced in 2015 and later discontinued in 2019, and now it has relaunched on March 20, 2023. A few details about crude oil mini-trading:
Example for Buy and sell MCX Crude oil charges:
Example for Buy and sell MCX Crude Mini charges:
For entire commodity foundation course is just 300 Rs link is below