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The Ukrainian Presidential Office announced that Sweden will purchase up to 20 Griffin E/F fighter jets for Kyiv for €2.5 billion.Irans Islamic Revolutionary Guard Corps: Iran still controls and manages the Strait of Hormuz, and any interference will be met with a "decisive response."Xiaomi Group (01810.HK) repurchased 10.5 million B shares on May 28, spending nearly HK$300 million.According to Iranian state television, on the morning before the US attack on Bandar Abbas, Iran intercepted two ships passing through the Strait of Hormuz and forced two other ships to turn back.On May 28, Futures Exchange issued a notice revising the "Detailed Rules for Lithium Carbonate Futures and Options Business of Guangzhou Futures Exchange" to strengthen risk control and ensure the smooth and orderly operation of the market. The notice adjusts the position limits for general months of lithium carbonate futures contracts: Starting with the lithium carbonate futures contract LC2610, from the date of contract listing to the 9th trading day of the month preceding the delivery month (i.e., the general month), the position limit is 5% of the contracts total open interest when the single-sided open interest exceeds 60,000 lots, and 3,000 lots when the single-sided open interest is less than 60,000 lots. 1. CITIC Securities Futures stated that the adjustment changes the position limit from 3,000 lots for contracts with a single-sided open position of 30,000 lots to 3,000 lots for contracts with a single-sided open position of 60,000 lots. The position limit for contracts with a single-sided open position exceeding 30,000 lots (10% of the contracts open position) has been adjusted to 5% for contracts with a single-sided open position exceeding 60,000 lots. This can be understood as a reduction in the position limits. Industrial clients can apply for hedging quotas according to their operational needs; this adjustment will not affect their participation. 2. A relevant official from the Guangzhou Futures Exchange stated that, based on a thorough assessment of the products operation and in accordance with market development needs and the requirements of "strengthening supervision, preventing risks, and promoting high-quality development," the exchange adjusted the position limits for general months of lithium carbonate futures to ensure the stable operation of the futures market. Furthermore, the Guangzhou Futures Exchange will continue to optimize product rules, strengthen risk assessment and market supervision, and strive to ensure the safe and stable operation of the futures market.

Introduction of Oil

LEO

Oct 25, 2021 13:27

Introduction of Oil 


Oil is one of the most actively traded commodities in the world，it also knows as 'petroleum or crude oil' or more popularly known as 'Black Gold' in the modern world. Generally speaking, price fluctuation of crude oil is closely related to political events and the economy. 


The crude oil market is significantly larger than that for any other commodity, both in terms of physical production and financial market activity.


The main crude oil trading contracts in the world are West Texas Intermediate (WTI) futures, Brent Crude futures, and Dubai Crude futures.


WTI futures contracts are traded on the New York Mercantile Exchange (NYMEX), which is owned by the Chicago Mercantile Group (CME). WTI futures contracts are deliverable in Cushing, Oklahoma. Cushing is a transshipment point with intersecting pipelines and storage facilities with easy access to refiners and suppliers.


Brent Crude futures contracts are traded on the Intercontinental Exchange (ICE) in London.



Dubai Crude is a medium sour crude oil extracted from Dubai. Dubai Crude futures contracts Singapore Exchange.


Other types of petroleum futures include heating oil, fuel oil, gasoline, light diesel, etc.


Many factors affect crude oil prices, such as crude oil supply and demand, political factors, the dollar index, and other energy trends.


There are three main ways of speculating on oil price movement: futures and options, CFD trading, or investing via equities and ETFs.


Buy futures and options


To trade futures and options, investors need to use the right exchange for the oil benchmark you wish to trade. Most exchanges have criteria for who is allowed trade on them, so professionals undertake the majority of futures speculation instead of individuals. If you want to trade options, you’ll need an options broker.


Trade via CFDs

CFDs enable investors to trade on the changing prices of futures and options without buying and selling the contracts themselves. And instead of trading on a commodities exchange, investors create an account with a leveraged provider. 


Oil investment

Instead of trading individual markets, you can get exposure to oil via the shares of oil companies and oil exchange-traded funds (ETFs). The prices of oil companies are heavily influenced by the price of oil, and can sometimes offer good value compared to trading oil itself. Investors can use ETFs to invest in oil benchmarks or a basket of oil stocks.


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