Page 2 - MEX Express - Vol 6 Issue 1

www.mexnepal.com FACTS AND FIGURES Volume: 6 • Issue: 1 • Year: 2014 A.D
Market Capitalization - Futures Contracts
From January 2014 - March 2014 (in%) Know Your Commodities

Market Capitalization of all the future contracts listed in the MEX Crude Oil
terminal. Micro Gold has the maximum capitalizaiton followed by Gold
& Small Gold. Introduction • USA is the world’s largest consumer Crude OIL
of crude oil followed by China, Japan, India Contract Specification
Market Capitalization - Spot Contracts It is often known as ‘black gold’ and Saudi Arabia.
From January 2014 - March 2014 (in%) or “Texas Tea”. Crude oil is the Name Crude Oil
unprocessed oil that is found beneath the • OPEC countries control 44% of the Symbol CRU
earth’s surface differing in color and viscosity world’s daily production thus making control Contract Size 200
and found in the form of liquid or solid. It is over oil prices. Unit US Barrels
made up of hydrocarbon compounds which Price Quoted NPR / Barrel
consists of Paraffins, Aromatics, Napthenes • The prices of crude oil are usually Trading Hours 00:00 - 02:45
or Cycloalkanes, Alkanes. It is also known very volatile and depend on the demand and Quality Light Sweet Crude
as “Mother of all Commodities” because of supply of oil. Amid from the demand and API Gravity: 37-42
its use in the manufacturing of numerous supply, political instability in the Middle degree, Sulfur
products, including gasoline, synthetic East usually impacts the crude oil prices. content: less than or
fabrics, plastics and pharmaceuticals. It equal to 0.42%
accounts for 40% of the world’s primary • World oil prices move together due to Contract Months All Months
energy consumption followed by coal (23%) arbitrage.
and natural gas (22%). OPEC countries hold fracking.
around 81% of total oil reserves with 66% • It may cause inflation and affects the • Shipping availability, freight rates,
located in the Middle East alone. It is a non- pricing of almost everything.
renewable source of energy and has high market trading activities and strategies.
economic value. • Seasonal demand and demand spikes • Short term decisions of oil producing
For example: During the second quarter of
the year the refineries in Europe and North countries, changes in economic conditions or
America undergo maintenance. sentiment in both the short and longer term,
investment in new oil production/ refining
• Cost of oil production and refining capacity.
along with technological progress. New
technological process in extraction of oil
is used known as hydraulic fracturing or

Crude oil is traded in almost all the
exchanges all around the world. However,
the major crude oil trading exchanges are
New York Mercantile Exchange (NYMEX),
International Petroleum Exchange of
London (IPE), Tokyo Commodity Exchange
(TOCOM) and Mercantile Exchange Nepal
Ltd. in Nepal.

Market Capitalization of all the spot contracts listed in the MEX Some facts about Crude Oil
terminal. Nano Gold continues to have the maximum capitalization
followed by Nano Silver and Gold. • The biggest reserve of crude oil is in
Venezuela, Saudi Arabia, Canada, Iran and
Iraq respectively.

• The major oil producing countries are
Russia, Saudi Arabia, United States, Iran and
China.

Major Market Movers for Crude Oil & Natural Gas(1st January-31st March 2014)

10000 Crude Oil 500 Natural Gas
8000
6000 400
4000 300
2000 200
100
0
0
Prices
Note:
1/1/2014
Date 9/1/2014
1/1/2014 30/1/2014
9/1/2014 12/2/2014
30/1/2014 19/2/2014
12/2/2014 25/2/2014
19/2/2014 3/3/2014
25/2/2014 17/3/2014
3/3/2014 31/3/2014
17/3/2014
31/3/2014 Prices

1/1/2014
10/1/2014
29/1/2014
10/2/2014
24/2/2014
28/2/2014
3/3/2014
13/3/2014
31/3/2014
Note:
News News
Opening Price as of 1st January 2014 Date Opening Price as of 1st January 2014
Weaker job data in USA 1/1/2014 Pessimism spread throughout the energy market
Strong demand of oil 10/1/2014 Higher Demand as winter control measure
Strong technical buying 29/1/2014 Higher stockpiles of the product
Optimism in the market 10/2/2014 Weather towards the end of winter
Market Interaction for the positions 24/2/2014 Decrease in the demand of the natural gas
Highly felt demand pressure 28/2/2014 US Federal Reserve Policy Meeting
Rise in the oil inventory 3/3/2014 Rise in the inventory level
Closing Price as of 31 March 2014 13/3/2014 Closing Price as of 31 March 2014
31/3/2014
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