Crude Oil Trading

CRUDE OIL TRADING:

For a sustainable economic recuperation, a continuous energy source is essential. In the world economy, almost all of the countries want to have and/or control crude oil that is one of the continuous energy types. This condition designates that the crude oil is an indispensable source from the political point of view. In the history, there had been lots of conflicts and wars in order to gain ascendancy over crude oil reserves, and military potential has still been used for this.

The basic factors those affect the world crude oil supply and accordingly the formation of prices; the strategic crude oil reserves of countries, the available stock condition of producer countries, the production and delivery costs, and the seasonal grounds. In addition, the strategic and investment policies of International Energy Agency (IEA), the USA, and big petrol companies have effects on supply.

The factors on the price generation in terms of demand are; economic development, the chaos in the regional economic-political activities, the expectations on the safety of energy provision and the increase in the necessity of more quality petrol products.

We can denote the factors those determine the prices of crude oil and refinery products as;

• The increase in the demands to crude oil and refinery products: the demands to crude oil and refinery products have developed especially with the effects of economic growths in China and India.

• The restraint of world wide refinery capacity: all of the refineries in almost all countries have been working full capacity in order to meet the increasing demand of refinery products. However it is essential for the new refineries to be established in the future because of the regular increments in demand rates. Putting new refineries into service means high amount investments those include building and management phases. On the other hand, the regular increase in the standards of environmental...