By now, the crude oil traders must be familiar with this in-demand trading commodity. However, there are a lot of facts about crude oil that can impact your trading decisions. Yes, you read that right! Its origin, value, and global use are some of the vital factors that have a major impact on the trading of this investment product.

Are you a regular trader of crude oil? Well, before trading this exclusive commodity, read on this post to know the surprising facts of this product. Here we go:

Crude Oil is a Natural Product that can be classified into different Types

You might already know that crude oil is a natural resource. This product is composed of hydrocarbons and a reasonable amount of sulfur, oxygen, and nitrogen. Crude oil is made out of the remains of dead and decayed plants and animals that were buried deep under the surface of the earth billions of years ago. The natural factors such as pressure and heat convert these compounds into crude oil.

Crude oil can vary depending on its type and the method used to extract it. Basically, there is a light, medium, heavy and extra heavy crude oil.

Crude Oil is used in all Our Daily-use Items

As crude oil is extensively used in our daily life, it is regarded as one of the most crucial energy sources on earth. The use of this natural resource isn’t confined to heating and fuel purpose; in fact, it is also used in the formation of waxes, asphalt, lubricants, and other vital products. These petrochemicals are used to create more familiar products such as clothes, plastic, and much more.

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The device you are carrying in your hands has been treated with crude oil in its development journey. The aircraft, train, truck, retail store, appliances, and even the manufacturing units require crude oil to function properly. It is pretty surprising to say that everything you see in your daily life has encountered crude oil in its production phase. Perhaps, that’s the reasons why crude oil receives a whopping 5 Countries produce almost half of the Total Global Crude Oil

There are five main oil-producing countries that are responsible for the production of nearly half of the total crude oil supplied to the world every day (i.e. approximately 92.65 barrels). In 2017, the United States was declared the top producer of crude oil, producing an average of 13 million barrels a day. Note that the term production here means the extraction of oil from the earth. For crude oil investors and traders, the production of this natural resource from the 5 major oil-producing countries plays a vital role in altering the price and market demand of the crude oil. On the contrary, the oil extracted in other than the five main countries have little to no influence in its price and demand in the market.

It is worth to note that the production of crude oil is largely influenced by some external factors such as unpredictable climate conditions and political uncertainty. For instance, unfavourable weather can hamper the extraction process within the oil-producing nations, which further results in increased crude oil prices in the world.

8 Million Oil Barrels are imported by the United States every day

It might come as a surprise to the traders, but the US imports as much as 8 million barrel of oil per day. Even though it is one of the largest producers of crude oil, it needs approximately 7.97 barrels of crude oil. There are mainly two reasons for this:

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  • Not all crude oils are the same. This natural resource may differ on the basis of its extraction and type.
  • The United States is known for its higher consumption of crude oil than its domestic production of the same.

The United States is the world’s largest producer as well as consumer of crude oil. According to the sources, the country consumed around 19.88 million barrels per day in 2017. It was also reported that the major part of the US’s crude oil was for the transportation industry.

  1. The Factors Influencing the Price of Crude Oil can be unrelated to Oil

The demand and price of Crude oil are affected by multiple factors, one of which is the strong United States dollars. The strong US dollars are capable of keeping the prices of this natural resource from increasing. As both major types of crude oil i.e. Brent and WTI are priced in United States currency, the US dollars have a strong impact on the prices of this investment product.

These were the five surprising facts about crude oil every individual planning to invest in this product should know.

Also Read: How to Invest in Crude Oil?

Also Read: Strategies for Trading the Gold-Silver Ratio

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The Share Market A Guide to Trading (2)

The Share Market: A Guide to Trading – Gill Broking

It is, therefore, important to learn both the pros and cons of intraday trading to get a better idea of how this market works and how exactly you can grow your money. In this post, we will walk you through a few advantages and disadvantages of intraday trading. So, keep reading to learn more.

• Beware of fixed/guaranteed/regular returns/ capital protection schemes. Brokers or their authorized persons or any of their associates are not authorized to offer fixed/guaranteed/regular returns/ capital protection on your investment or authorized to enter into any loan agreement with you to pay interest on the funds offered by you. Please note that in case of default of a member claim for funds or securities given to the broker under any arrangement/ agreement of indicative return will not be accepted by the relevant Committee of the Exchange as per the approved norms.
• Ensure that pay-out of funds/securities is received in your account within 1 working day from the date of pay-out.
• Be careful while executing the PoA (Power of Attorney) – specify all the rights that the stock broker can exercise and timeframe for which PoA is valid. It may be noted that PoA is not a mandatory requirement as per SEBI / Exchanges.
• Register for online applications viz Speed-e and Easiest provided by Depositories for online delivery of securities as an alternative to PoA.

• Do not keep funds idle with the Stock Broker. Please note that your stock broker has to return the credit balance lying with them, within three working days in case you have not done any transaction within last 30 calendar days. Please note that in case of default of a Member, claim for funds and securities, without any transaction on the exchange will not be accepted by the relevant Committee of the Exchange as per the approved norms.

• Check the frequency of accounts settlement opted for. If you have opted for running account, please ensure that your broker settles your account and, in any case, not later than once in 90 days (or 30 days if you have opted for 30 days settlement). In case of declaration of trading member as defaulter, the claims of clients against such defaulter member would be subject to norms for eligibility of claims for compensation from IPF to the clients of the defaulter member. These norms are available on Exchange website at following link: NSE, MCX

• Brokers are not permitted to accept transfer of securities as margin. Securities offered as margin/ collateral MUST remain in the account of the client and can be pledged to the broker only by way of ‘margin pledge’, created in the Depository system. Clients are not permitted to place any securities with the broker or associate of the broker or authorized person of the broker for any reason. Broker can take securities belonging to clients only for settlement of securities sold by the client.

• Always keep your contact details viz. Mobile number/Email ID updated with the stock broker. Email and mobile number is mandatory and you must provide the same to your broker for updation in Exchange records. You must immediately take up the matter with Stock Broker/Exchange if you are not receiving the messages from Exchange/Depositories regularly.

• Don’t ignore any emails/SMSs received from the Exchange for trades done by you. Verify the same with the Contract notes/Statement of accounts received from your broker and report discrepancy, if any, to your broker in writing immediately and if the Stock Broker does not respond, please take this up with the Exchange/Depositories forthwith.

• Check messages sent by Exchanges on a weekly basis regarding funds and securities balances reported by the trading member, compare it with the weekly statement of account sent by broker and immediately raise a concern to the exchange if you notice a discrepancy.

• Please do not transfer funds, for the purposes of trading to anyone, including an authorized person or an associate of the broker, other than a SEBI registered Stock broker.

• Do not deal with unregistered intermediaries (who are not registered with SEBI/Exchanges).

Names and contact details of all Key Managerial Personnel including Compliance Officer

Sr. No.Name of the IndividualDesignationContact NumbersEmail Id
1 Charanpreet GillCEO/MD011-40345555admin@gillbroking.com
2 Charanpreet GillWhole Time Director011-40345555gillbroking@gmail.com
3 Charanpreet GillCompliance officer011-40345555compliance@gillbroking.com
4Manpriya GillDesignated Director-1011-40345555manngill04@gmail.com
5Kewal GillDesignated Director-2011-40345555fvwealth@gmail.com

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