@

Crude Oil

Crude oil is a naturally occurring petroleum product that can be refined for use in a wide variety of materials, such as gasoline, plastics, pharmaceuticals and other chemicals. Oil is a fossil fuel that occurs when dead organisms are heated and pressurised within the earth's surface and subsequently liquidised, absorbing impurities like sulfur from the ground, a process that takes millions of years. Oil is generally sold in barrels, which contain 42 US gallons. The world consumes more than 34 billion barrels of oil a year. ((http://www.iea.org/aboutus/faqs/oil/ Retrieved 5 March 2015.))

Oil Chart


Oil Reserves

Oil reserves are locations of proven, recoverable oil. Though extraction of oil from wells, fields and sand may differ in method, but reserves include potentially extracted oil. Currently, there is an estimated 1, 490 billion barrels of oil in reserve globally, across 80 countries:((http://www.opec.org/opec_web/en/data_graphs/330.htm Retrieved 5 March 2015.))

Country Global Reserves (billions of barrels)
Venezuela 297.6
Saudi Arabia 267.9
Canada 173.1
Iran 154.6
Iraq 141.4
Kuwait 104.0
United Arab Emirates 97.8
Russia 80.0
Libya 48.0
Nigeria 37.2


Price of Oil

Pricing systems for oil have shifted over the years. Generally, benchmark crude is used to determine prices because crude oil come in many varieties and qualities, often referred to by color, light or dark, or by its sulpher content, sweet or sour.
The primary benchmarks for crude oil come from the West Texas Intermediate (WTI), Brent Bland and Dubai Crude. Around the world, Brent Bland is commonly used—pricing two-thirds of the world's oil. Dubai prices most of the oil in Persian Gulf territories. WTI is the common US benchmark. OPEC (Organisation of Petroleum Exporting Countries) prices an oil basket based on oils from multiple countries in its organisation.((http://news.bbc.co.uk/2/hi/business/904748.stm Retrieved 6 March 2015.))

Oil Futures

Oil futures can be purchased through exchanges, which buy and sell on current market price with delivery a month later.

Any opinions, news, research, analyses, prices, other information, or links to third-party sites are provided as general market commentary and do not constitute investment advice. FXCM will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.

Russell Shor

Russell Shor

Russell Shor (MSTA, CFTe, MFTA) is a Senior Market Specialist at FXCM. He joined the firm in October 2017 and has an Honours Degree in Economics from the University of South Africa and holds the coveted Certified Financial Technician and Master of Financial Technical Analysis qualifications from the International Federation…

View Expert Profile

Disclosure

Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.

Risk Warning: Our service includes products that are traded on margin and carry a risk of losses in excess of your deposited funds. The products may not be suitable for all investors. Please ensure that you fully understand the risks involved.