Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
All of this great info on crude makes me wish I knew more. Where can I learn about all things oil? Huge subject I know, but if someone wants to start on basics like how heavy vs light and sweet vs sour affect the potential to refine into things like gasoline, I'm willing to dig in a bit and learn, and would be most grateful.
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,057 since Dec 2013
Thanks Given: 4,399
Thanks Received: 10,225
Unfortunately I do not know of any good books or resources on crude oil itself. Petroleum Refining in Nontechnical Language is an excellent book on refining but it's become difficult to find. In simple terms Sweet vs Sour is Sulphur content. Sulphur is bad! Light versus Heavy is product yield. Light Crudes yield a lot of Gasoline, Jet, Diesel/Heating Oil while Heavy Crudes yield more Fuel Oil etc. Brent and WTI are both Light Sweet Crudes. The additional factor is Refineries. A simple refinery just processes crude. A complex refinery has additional units that can further process the original products to yield lighter products. All US refineries are Very Complex Refineries. As such they can take Heavy Crudes and still produce mostly Gasoline, Jet, Diesel/Heating Oil. This is why we are in the situation that we import so much crude (Medium & Heavy Crudes from the Middle East) but also export so much crude (Light Crudes mostly going to the Far East.). If US refiners had to use WTI as their primary crude intake, a lot of the refinery would end up being idle as the additional complex units would be underused.
But a more severe constraint is likely to come from the refined fuels system, where storage capacity is lower and logistics constraints are tougher.
...
But once fuel storage is full, refineries will have no choice but to cut back crude processing, which will cause crude stocks to back up even more rapidly.
Hedge funds were net purchasers of petroleum futures and options for the third week running last week as managers gambled that the market has already hit its trough.
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,057 since Dec 2013
Thanks Given: 4,399
Thanks Received: 10,225
FYI for anybody following this thread, there's a second thread getting a lot of posts discussing current negative crude prices. Wish it was all centralized here but oh well. But in case your not aware of it here it is...
Several sources are indicating the today very low oil price might fall to zero or into negative numbers. (see Bloomberg and other this month).
The point is the crucial oil storage which is no longer there: …
The following May 2020 Energy products (CLK0, HOK0, QHK0, QMK0, QUK0, RBK0, HCLK0, RTK0, WSK0, RLXK0, TCSK0, MPXK0, 23K0, CSXK0, 26K0) have no low limit and may trade negative.
If you have any questions, please contact the CME Global Command Center in the U.S. at +1 800 438 8616, in Europe at +44 20 7623 4747 or in Asia at +65 6532 5010.
The sender provided the following contact information.
Sender's Name: CME Global Command Center
Sender's Email: [email protected]
Sender's Contact Phone: 1 800 438 8616
The Q products are the mini's. WS is the financial bullet. HCL WTI @ Houston, not sure about the others off the top of my head.