MCX Crude Oil is a naturally occurring, unrefined petroleum product. It remains liquid at atmospheric pressure and temperature. MCX Crude Oil has a wide ranging viscosity and can vary in color to various shades of black and yellow depending on its hydrocarbon composition. To produce usable products such as gasoline, diesel and various forms of petrochemicals MCX Crude Oil is refined . Even though most MCX Crude Oil is produced by a relatively small number of companies, and often located in remote locations far from the point of consumption. Nearly 80% of international crude oil is transported through waterways in large tankers and most of the rest by inland pipelines
The majority of MCX Crude Oil reserves in the world is in the Middle East. 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. OPEC 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. Modern techniques and strategies can improve efficiency and consolidate competitiveness through price risk management. These include including market-based risk management financial instruments like Crude Oil Futures, offered on the MCX India platform.
Crude Oil is one of the preferred commodity for commodity traders in India and globe.
► OPEC output or supply is the key factor which effects the price of Crude Oil
► Changing scenarios in oil demand from emerging and developing countries
► US crude and products inventories
► Refinery Utilization rate
► Global geopolitics
► Speculative buying and selling