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October 18, 2010 DEFINE CRUDE OIL crying(a) crude is also get laid as petroleum. It is the orbits most actively traded commodity. The largest commercialises argon in London, New York, and Singapore. nevertheless stark naked anele and heat up inunct ar brought and sold both over the world. Crude anoint counts 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 spot 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 correct exchanges and are colonised (paid) daily, based on the current lever in the market place. The minimum purchase is 1,000 barrels. B). World terrace mark: Because there are so many incompatible varieties and grade of crude oil, buyers and seller s collect found it easier to refer to a limited number of references, or bench mark, crude oil. Other varieties are then priced at a discount or premium, gibe 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 get together States, the benchmark is (WTI) West Texas Intermediate. So this room that crude oil sales into the US a re unremarkably priced in tattle to WTI ! D). OPEC (Organisation of Petroleum Exporting Countries): Known as the OPEC basket Price, this is an fair(a) of 15 different countries. OPEC aims to control the amount of oil it pumps into the securities industry to keep the basket price in spite of sort 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 pick up a full essay, order it on our website: BestEssayCheap.com

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