Nishidh CFM Crude oil

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BRENT CRUDE OIL

By:

Nishidh Shah

M.B.A-F.S-24



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Contents

Product Profile3

Contract Specification4

Commodity1

Crude Oil2



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What is commodities?

� Commodities are things of value, of uniform quality, that were

produced in large quantities by many different producers; the

items from each different producer are considered equivalent.

� It is the contract and this underlying standard that define the

commodity, not any quality inherent in the product.

� Commodities exchanges include:

Chicago Board of Trade

Euronext.liffe

London Metal Exchange

New York Mercantile Exchange

Multi Commodity Exchange

Dalian Commodity Exchange



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Commodities products

37%

30%

33%

Commodities products

Agricutuaralproducts

Metal andMinerals

Oil and Gas

3 Main product categories;

� Agricultural Products

� Metal and Minerals

� Oil and Gas



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Composite of each group

Corn15%

Wheat13%

Soybeans21%

Live Cattle13%

Lean Hogs7%

Soybean Oil7%

Sugar 9%

Coffee8%

Cotton7%

Agricultural products

Aluminum24%

Copper 23%

Zinc10%

Nickel9%

Gold25%

Silver

9%

Metal and Minerals

Crude Oil40%

Natural Gas37%

Gasoline11%

Heating Oil12%

Oil and Gas



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CRUDE OIL

Basically 3 types of crude oil

1) West taxas Intermidiate:- one of the largest

traded commodity in the world. Gravity is

between 37 to 42 degree.

2) Brent crude oil:- it is second most traded

commodity in the crude oil in the world gravity

is 39 degree

3) Middle east crude oil:- variety with largephysical market. Most of Indian refineries use

crude bench mark against middle east crude

oil. Gravity is 31 to 37 degree.

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PRODUCT PROFILE

Mixture of hydrocarbon that exist in a liquidform.

It accounts for 40% of world primary energy

consumption. All industries are directly or indirectly dependent

on derivatives from crude oil. and price

movement affect prices of lubricant,

petrochemicals.

The prices of crude are highly volatile. High oil

prices lead to inflation which increases input

cost, and reducing non-oil demand.



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General charctstics

light sweet crude oil from North Sea. It has API gravity

between 38-39 and has higher sulphur content

Brent crude oil is a global benchmark for other grades

and is used to determine crude oil prices in Europe and

in other parts of the world. Brent is typically refined in Northwest Europe, but a

major portion is been exported to the US Gulf and East

Coasts, and also to parts of Mediterranean.

It is more expensive than the Organization of Petroleum

Exporting Countries (OPEC) basket, but lesser than

West Texas Intermediate (WTI) because of higher

sulphur content than the WTI crude.



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Scenario

India ranks among the top 10 largest oil-consuming countries. Oil accounts for about 30

per cent of India's total energy consumption.

OPEC stands for 'Organization of PetroleumExporting Countries'. It is an organization of

eleven developing countries that are heavily

dependent on oil revenues as their main source of

income. The current Members are Algeria,Indonesia, Iran, Iraq, Kuwait, Libya.



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Market Influencing Factors

OPEC output and supply .

Terrorism, Weather/storms, War and any other

unforeseen geopolitical factors that causes supply

disruptions.

Global demand particularly from emerging nations.

Dollar fluctuations.

DOE / API imports and stocks.

Refinery fires & funds buying.



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Opportunities

1) Supply of crude oil

2) Supply of Gas

3) LNG import and transportation4) Setting up refineries

5) Marketing petroleum products like LPG

6) Retail marketing of transportation fuel7) Production sharing contract for oil and gas





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CONTRACT LAUNCH CALANDER

CONTRACT LAUNH MONTH EXPIRY MONTH

After approval of commision January 2011

November 2010 February 2011

December 2010 March 2011

January 2011 April 2011

February 2

011 May 2

011

March 2011 June 2011



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Nishidh CFM Crude oil