if i traded oil regularly, i would have a desktop that took a kind-of top-down approach to looking at the market. it's a macro approach that helps develop a framework for your analysis; this in turn helps you assess the overall context of the market, and determine what information is relevant and currently driving price. you'll have more conviction in your trades and more confidence in your decisions. so, if a trade moves against you 10 tics or with you10 tics, you'll have a much better idea whether you should be looking to get out, hold, or add.
Of those only Brent & WTI have liquid financial markets.
Dubai, Tapis & Mars do all trade but mostly over-the-counter ("OTC") and not electronically.
LLS (Light Louisiana Sweet) is another crude that trades regularly OTC.
If your doing research you might want to add Oman & Urals (Russian) to your research list but not sure either trades financially.
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Oh yeah there are hundreds of different types of crude that all yield very different products when run through a refinery. Almost every crude field produces a different crude.
Unbeknownst to most the NYMEX Crude Contract ISN'T a WTI contract, it's actually Light Sweet Crude contract. There are long list of crudes that you can deliver into the contract at varying price differentials. It get's called WTI though because that is the benchmark crude for the differentials and the crude that in reality is nearly always delivered. Similarly what we call Brent is not actually Brent any more. Brent production has declined to the point that have had to include other similar North Sea crudes. The Brent Index is now actually a BFOE index representing Brent, Forties, Oseberg & Ekofisk. (Brent in itself is actually 'Brent Blend' as it's a mixture of several different close proximity North Sea Fields.)
Sweet (Sour) crudes are crudes that have Low (High) sulfur content.
Light crudes have a low density and yield a high proportion of light hydrocarbon fractions such as Gasoline, Diesel, Jet etc
Heavy crudes have a high density and yield a high proportion of heavy hydrocarbon fractions such as Fuel Oil.
A Light Sweet Crude (such as Brent & WTI) will yield a lot of high value petroleum products () that have a low sulfur content. (ie Low Sulfur Gasoline & Diesel)
A Heavy Sour Crude will yield more lower value petroleum products (Fuel Oil etc) that have a high sulfur content.
Not surprisingly Light Crudes are worth more than Heavy Crudes and Sweet Crudes are worth more than Sour Crudes.
Throwing this out there (@trendwaves , @DiemTrader, et al)
There's some interesting volume showing up
12-16-14 my guess is folks are squaring up for contract roll, it may have started on 12-12 and 12-15. (Also we have the comments (OPEC?) no price is to low for oil, go to hell Russia and North Dakota.)
12-18 actual roll
Typical Holiday volume
However volume this week esp TUE WED & FRI
Reminds me of that Dodge commercial "you about to find out"
Anyway food for thought
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The above numbers are based on CME settlement, not platform close
Last edited by WilleeMac; January 10th, 2015 at 04:51 PM.
Reason: sp clarify syntax
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