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The world crude trading

Discuss research and forecasts regarding hydrocarbon depletion.

The world crude trading

Unread postby sparky » Sat 01 Aug 2020, 15:37:02

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crude oil is a huge market in price , speculation and strategic importance
the buyer , seller and speculators are most active on the trading markets for various indexes
some are famous others less so
there is the West Texas intermediate grade of oil ,or "WTI"
traded on the New York Mercantile exchange as delivered at Cushing Oklahoma , a node of pipelines and storage ,
it has become infamous for it's very high ratio of speculators to physical buyers

It' importance has been overtaken by the London based international exchange ICE "Brent" , deliverable in various location of the north sea
it now account for two third of real oil deliveries , very important for any North Atlantic professional

Both WTI and Brent are nominal grade , nowadays they are made up of various mixes of other oils

There is the Dubai Mercantile Exchange future contracts on Dubai crude grade , while the quantities are small it is quickly deliverable at the port
and give a good idea of the gulf market with it's often sour grades

the latest newcomer is the Shanghai based International Energy exchange INE , it doesn't have one nominal grade but all the various crude usually imported in china are traded , it's a close trading system less than one hundred traders are allowed the customers are the 50 or so refiners in china mainland
the trading is in Yuan , recently the designated storage capacity more than doubled in April to 48.13 million barrels, from 22.03 million barrels at the end of March.
while the trading is free flowing the government keep a tight grip on the market ,
dealers can have their trading rights revoked if they don't pay their taxes , some contracts for forward sale to other destinations are appearing
it already is the third trading hub in the world and is growing fast
it's strength is the large amount of oil being consumed in china itself it aim to become the East Pacific trading center
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sparky
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