Energy futures (Energy Futures) include crude oil and its subsidiary products such as fuel oil, gasoline, etc., and other energy such as propane, natural gas and other futures. Crude oil is the most used energy source in the world, and no energy can replace its position at least in the short term. Generally, most crude oil production is concentrated in the Middle East, so crude oil price fluctuations are susceptible to the impact of the Organization of Petroleum Exporting Countries (OPEC) resolutions on oil production, but the United States is a major crude oil user, so it still has considerable influence on crude oil price fluctuations. Influence. The world’s largest energy futures exchange is currently the New York Mercantile Exchange (NYMEX).
Gasoline is a volatile and volatile hydrocarbon mixture liquid that is fractionated or cracked or cracked from petroleum and can be used as fuel.
Fuel (English: fuel) is a substance that releases its own internal energy for other uses through chemical or nuclear reactions.
Fuel can be divided into natural fuel and artificial fuel. Natural fuels are obtained from nature and can be used directly, such as firewood, coal, etc.; artificial fuels are fuels obtained after processing, such as coke, fuel oil, etc.
The quality of fuel is determined by the calorific value of the heat it generates. Using the energy of the water vapor in the exhaust gas, people can technically increase the heating value.
Petroleum (English, Latin: petroleum, Latin etymology Greek: petra (rock) + Latin: oleum (oil)), also known as crude oil, is a viscous, dark brown (sometimes a little green) liquid. There are oil storages in parts of the upper crust. It is composed of a mixture of different hydrocarbons, and its main component is alkanes. In addition, petroleum also contains elements such as sulfur, oxygen, nitrogen, phosphorus, and vanadium. However, the oil composition and appearance of different oil fields can be very different. Petroleum is mainly used as fuel and gasoline. Fuel oil and gasoline constitute one of the most important primary energy sources in the world. Petroleum is also a raw material for many chemical industrial products such as solutions, fertilizers, pesticides and plastics. Today 88% of the extracted oil is used as fuel, and the other 12% is used as raw material for the chemical industry. Because oil is a non-renewable energy source, many people worry that exhaustion of oil will have serious consequences for mankind. Oil is also called black gold because of its high value.
There are abundant reserves in Saudi Arabia, Iraq, Iran, Kuwait, UAE, and Qatar in the Persian Gulf in the Middle East, and there are also a lot of reserves in Russia, Venezuela, Canada, Libya, Nigeria, the United States, Mexico, Kazakhstan, China and other places. . Venezuela has the highest oil reserves in the world.
The commonly used unit of measurement of oil, “barrel”, is a unit of capacity, namely 42 US gallons (160 liters). Because the density of oil produced varies from place to place, the weight of a barrel of oil varies. Generally, one ton of oil is about 7.3 barrels (1,160 liters).
Futures contract (English: Futures contract), referred to as futures (English: Futures), is a trading method that spans time. By signing a contract, the buyer and seller agree to deliver a specified amount of spot according to the specified time, price and other trading conditions. Usually futures are concentrated on futures exchanges and are traded in standardized contracts. However, some futures contracts can be traded through counter transactions, which are called over-the-counter contracts.
Futures are a kind of derivative instruments. According to the type of spot subject matter, futures can be divided into commodity futures and financial futures. Among the participants in futures traders, arbitrageurs (or hedgers) lock in profits and costs by buying and selling futures, reducing the risk of price fluctuations caused by time. Speculators take more risks through futures trading and look for opportunities to make profits from price fluctuations.
Many futures markets are developed from forward contracts, which refer to cross-time sales and purchase contracts that are signed one by one. The trading rules are agreed upon by the buyer and the seller. Futures contracts are standardized by the exchange, allowing traders from all sides to conveniently match transactions on the same platform. Option (option) is another derivative tool derived from a futures contract.