Fossil oil (aka oil, crude oil, petroleum) emerged million years ago from residues of sea-vegetables and animals which have inhabited the primordial oceans. The usage of oil as an energy source began 1854 with the invention of the kerosene lamp (lamp oil).
Oil is the most important raw material of the industrial societies, for oil is globally the most significant energy source. It is indispensable at the act of generating electricity and heat; and it serves as fuel for nearly all means of transport. In the chemical industry it is used as charge material at the creation of uncountable plastics and even finds usage in cosmetics and medications.
Globally, there are dozens of oil-sorts altogether, which all have individual traits and prices. The origins range from Alaska North Slope over Arab Light up to Zuetina – a town in Libya. However, at the futures exchange markets in London and New York standardized products are traded – so called oil markers. The prices of all other sorts are then ascertained as deduction or surcharge on the oil marker. The most traded oil marker for the U.S.A. is the West Texas Intermediate (WTI). The Dubai Crude (aka Dubai Fateh) dominates the market in Asia. Further sorts of oil markers are Leona, Tijuana, Alaska North Slope, Zuetina or Urals.
The oil produced in North America (above all the West Texas Intermediate) is traded on the New York Mercantile Exchange (NYMEX) under the term WTI-Light Sweet Crude Oil. The oil descended from oil-fields in the Northern Sea is traded on the International Petroleum Exchange (ICE) in London under the term Brent-Future. Both futures are noted in U.S. Dollars and refer to 1,000 barrel, whereby 1 barrel holds 159 liters.
Most important stock exchange centers: NYMEX and ICE
Contract-cycles: monthly.
Contract-size: 1,000 barrel (42,000 gallons).
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