Energy Commodities – Crude Oil & Natural Gas

Crude Oil or Petroleum, is simply unprocessed oil found deep beneath the earth’s surface.Natural gas is one of the cleanest, safest, and most useful forms of energy in our daily lives.

Enegy Commodities Includes Two Major Commodities 1 Crude Oil and 2. Natural Gas.

Crude oil is the term for “unprocessed” oil, the stuff that comes out of the ground. It is also known aspetroleum. Crude oil is a fossil fuel, meaning that it was made natural­ly from decaying plants and animals living in ancient seas millions of years ago — most places you can find crude oil were once sea beds. Crude oils vary in color, from clear to tar-black, and in viscosity, from water to almost solid.

Natural gas is a naturally occurring hydrocarbon gas mixture consisting primarily of methane, with up to 20 %[1]of other hydrocarbons as well as impurities in varying amounts such as carbon dioxide. Natural gas is widely used as an important energy source in many applications including heating buildings, generating electricity, providing heat and power to industry, as fuel for vehicles and as a chemical feedstock in the manufacture of products such as plastics and other commercially important organic chemicals..

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Crude Oil :

Crude Oil Market Influencing Factors
  • OPEC output and supply .
  • Terrorism, Weather/storms, War and any other unforeseen geopolitical factors that causes supply disruptions.
  • Global demand particularly from emerging nations.
  • Dollar fluctuations.
  • DOE / API imports and stocks.
  • Refinery fires & funds buying.

Natural Gas :

Natural Gas  Market Influencing Factors
  • Natural gas prices, too like that of any other commodity are a function of market supply and demand. As there are limited alternatives for changing consumption or production in the short run, changes in supply or demand over a short period often result in large price movements.
  • Strength of economy, weather and crude oil prices are the major demand-side factors influencing price. Severe winter in developed countries can increase demand for domestic and commercial heating and is a major influencing factor.
  • The supply side factors influencing prices are variations in natural gas production, imports and storage levels. Hurricanes and severe weather can disrupt supply.
  • Macro-economic factors like exchange rates, interest rates and other economical indicators do influence natural gas prices.

MCX India

MCX is World No.2 in Natural Gas and No.3 in Crude Oil Futures Derivatives

NYMEX,USA

New York Mercantile Exchange (NYMEX), runs the world’s most Crude Oil and liquid natural gas derivative market.

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