Energy Commodity Market
From the ancient time, commodity trading always in the center of popularity. Many decades ago, there were only agricultural products, used in commodity trading. With each passing year, the field of commodities become larger. Now, besides agricultural products, there are gold, silver, copper, zinc, crude oil etc in commodity trading. Previously, we’ve covered two broad sections of commodity trading, bullion and base metal. In this section, we are going to deal with Energy. The page will cover crude oil Price Chart, an energy commodity.
Before entering into the main topic of crude oil, it’s important to know what exactly meant by the term “energy”. So, let’s have some basic idea regarding this. Energy is basically a power which can be derived from the multiple resources. For human survival, energy Energy has always been indispensable products. Hence, it has a great investment value. Crude Oil, Natural Gas, Coal etc fall under the energy category.
Unlike over the counter market, commodity exchange is an exchange-traded market. Here, commodity transaction takes place between buyers and sellers through the exchange market. Various types of trade conduct through the exchange market. Among the multiple regional and national commodity exchanges, few are popular, based on their activities. Commodity Exchanges such as MCX (Multi Commodity Exchange), NMCE (National Multi Commodity Exchange), ACE (ACE Derivatives Exchange), ICEX (Indian Commodity Exchange) etc. are widely used. Multi Commodity Exchange holds 86 percent share in the Indian Commodity Exchange. More than 40 commodities transact through the MCX.
Crude Oil as an Energy Commodity
Crude oil including various crude oil products like gasoline, heating oil, jet fuel, asphalt, diesel fuel, lubricating oil come under the category of petroleum products. These are non-renewable energy which can’t be replenished. There are 8 main things that can be extracted from Crude Oil. These are Petroleum gas, Naptha or Ligroin, Gasoline, Kerosene, Diesel Distillate, Lubricating Oil, Fuel Oil or Heavy Gas, Residuals (Bitumen). So Crude Oil is one of the most important commodities that drive the economy. The live Check Crude Oil price, chart, and analysis below.
Crude Oil Price Support And Resistance
|Moving Averages||8%||-||92%||Strong Buy|
|Trend Oscillators||-||-||100%||Strong Buy|
|Candlesticks patterns||-||-||100%||Strong Buy|
Crude Oil Futures Daily Candlestick Chart
The chart above the daily candles will update automatically with crude oil price movements. You need to refresh the page manually.
Usage of Crude Oil Products
Here is the list of crude oil products:
Gasoline is one of the most common refined products of crude oil. The fuel is used in the engines, mainly in the automobile industries.
Diesel is heavier than other crude oil products. In engines, vehicles, the use of diesel is maximum.
Industrial solvents like toluene, benzene, xylene are used for the cleaning purpose. Machinery cleaning is one of the most common solvents usages.
In Domestic as well as industrial purpose such as heating, lighting, Kerosene is used. Its higher freezing point makes the particular product more valuable.
This low-viscosity fuel commodity is used for boiling and furnace purpose.
Liquid Petroleum Gas
Petroleum gas like butane, propane can be applied as fuels in a portable appliance. Petrochemical industries use this product in a wide way.
Machinery in the boats, factories, power plants uses residual fuels.
As a form of charcoal coke is used. In domestic, automobile purpose coke can be applied.
The specific bio-product of crude oil is used for making roads, bridge etc.
This is also one of the most important by-products of crude oil.
Crude Oil in the Commodity Market
Crude Oil is heavily traded in MCX exchange. The trading unit for Crude Oil in MCX is 100 BBL. So 100 is the lot size in this commodity. There is a mini version available to trade. The trading unit for Crude Oil Mini is 10 BBL.
If you are looking for a trading strategy for trading Crude Oil check: How To Earn Weekly 120 Points Using Crude Oil Live Chart. Another trading strategy is here: Crude Oil Scalping With Parabolic SAR Indicator.
Brokers generally charge low margin for MCX commodities. So many traders tend to trade commodities for scalping. Zerodha needs a margin of Rs. 4500 (approx) for trading 1 lot of Crude Oil. So if you can make 20 points profit from the Crude Oil price movement it is a profit of Rs. 2000 per lot for you. While trading for 20 points a stop loss of 15 points can be kept. If one can achieve an accuracy of 60% also, he is going to earn 20×3 = 60 points in 3 winning trades and he loses 15 x 2 = 30 points in 2 losing trades. With a 60% accuracy also 30 points can be made safely from Crude Oil. This makes it one of the most popular traded commodities in the MCX market.
However, on the inventory day, Crude Oil reacts with huge volatility. So traders are advised not to trade crude oil near inventory.