The oil that we use originally comes from crude oil. This crude oil is the pure form of oil. For this reason the crude oil future can be somewhat difficult to predict.
There are many companies who will seek to buy the crude oil that is drilled. For these companies the crude oil future is one which is very important to gauge. This however does not guarantee the crude oil future as with so many oil spills on land and the oceans there are some countries which are considering other ways of finding the crude oil they require. There is also the other problem of various countries needing the byproducts of the crude oil rather than the crude oil itself. This situation makes the crude oil future very hard to predict.
You can use the price range as a way of seeing the crude oil future. When the oil prices are high it means there is a demand for crude oil and the low prices mean a drop on the crude oil demand.
Classes of Crude
Sulphur content and the viscosity of crude oil are what classify them. For sulphur content, crude oil with a higher sulphur are classed as sour and for crude with little sulphur content, it will be classed as sweet. When it comes to pricing, the light sweet crude oil commands a higher price because it will be easier and a lot cheaper to refine than the heavy sour crude oil.
WTI is classed as light crude, much lighter than Brent crude. North Sea Brent Crude
The OPEC Basket Price
This information of oil prices is known as OPEC Basket price.
1. Petroleum seller: you will need a crude oil seller or supplier where you can purchase the petroleum from.
2. Tanker: you will need a tank where you will be able to store the crude oil. The reason is because they are many buyers of crude oil aggressively searching for available crude oil to buy mainly in USA and Europe. The idea to make lots of money from buying and selling crude oil is to buy crude when it is very cheap and sell it when it is expensive. You will need to buy a piece of land and build the crude oil storage tank that can be able to store as much crude oil as you want. The crude oil storage tank could be an underground tank or surface tank. You can start to source for crude oil available for purchase at oil producing countries. One is through getting oil allocation from NNPC. It is a government agency responsible for selling and buying of crude oil.
3. You will be required to own a local oil refinery, international refinery and a major oil trader.
State the price you want to sell per barrel and anything to convince the oil refineries to buy your petroleum.