How oil markets work?
Complex oil market in terms of the actors and factors affecting prices, which not all be visible or are subject to interpretation, and intervenes in this market producers, buyers and traders, brokers and hedge funds, pension funds and of individual investors.
And are classified as oil according to sulfur ratio. If a few so-called Khama lightly and have its price is higher than the heavy, and if the high ratio called Khama heavy and sold for less because the cost of refining the highest, most famously, Brent crude for the European benchmark, US light crude, the two indexes Almarjaaan oil prices In the world.
This is a day buying and selling hundreds of millions of barrels of oil to world markets, both according to the futures or spot market, and in the end of the day is announced settlement price, and sells oil-exporting countries crudes both prices include a premium (increase) or discount (decrease) compared to the reference prices.
Markets and prices
“Controls in determining the price of oil, supply and demand equation, which is a major factor, the more the size of the supply, which pumps the market price dropped, and vice Sahih.ohnalk other factors such as the activities of speculators.”
The intended market of oil futures paper contracts that include a promise to purchase in a specific order at a fixed price is not affected by fluctuations in the markets, and most markets in which these contracts are trading the markets of New York and London, while the intended spot market those in which people sell oil to third parties immediately or in a specific order.
Identify and control the price of oil, which is the most important commodity a global strategy, the supply and demand equation, which is a major factor, the more the size of the supply, which pumps the market price fell, and vice versa.
But supply and demand is not the only factor, there are also other factors, such as the activity of speculators from the funds, which affect sales operations carried out in accordance with the futures holders, on the performance of oil prices up and down, as government policies and unrest geopolitical world affect prices.