What is Crude oil trading ?

Crude oil is unrefined petroleum which occurs naturally and contains hydrocarbon deposits this oil is valuable because gasoline or petrol diesel and other petrochemical products are made by refining it and another reason for its valuability is the it is non renewable form of resource there are two types of crude oil first one is WTI i.e West Texas Instruments which is a light sweet crude oil, with 40 on gravity and low sulfur content and the second one brent crude oil which is also a sweet crude oil from north sea and have same gravity as WTI and but has higher sulphur content this oil has closest quality as compared to WTI then there are other three types of oil such as opec reference bonny crude and dubai crude. If we talk in financial terms crude oil is a fungible commodity which means that specific grades of oil are identical for trading purposes this is the most active traded commodity in multi commodity exchange combined value of crude oil traded exceeds upto rs 3000 crore on the other hand traders mostly speculate on the crude oil prices. The companies placing contracts on MCX are reliance, ongc ioc bpcl and hpcl the retail traders mostly speculate on retail prices the new crude oil contracts are launched every month. This newly introduced crude oil contract have an expiry after six months. To actively trade in this contract contact an expert of commodity who will provide crude oil tips and traders who want to trade in crude oil must choose a nearby contract. There are two types of crude oil contracts crude oil and crude oil mini both contracts vary in lot size lot size of the big crude is 100 barrels while the crude mini lot size is 10 barrels and expiry is on 19th of every month Arbitrage between the two crude contracts is executed but one has to make sure that contract values are similar. Crude oil mini has lesser cost compared to crude oil big it has less barrel size that is 10 barrels has 1 rs tick size has expiry of 19th or 20 every month.