Analyst Report: Crude Oil Market, Supply, Demand, and Futures

This report provides a comprehensive analysis of the crude oil market, examining key factors influencing its development, including supply and demand dynamics in both physical and derivatives markets. It delves into pricing trends in the crude market, identifying factors driving these trends in the futures market, and assessing key developments in the crude markets with an emphasis on derivative instruments, particularly futures trading. The report also examines the impact of government regulations on the market, providing insights into investment and policy changes. The analysis includes data on UK Brent crude oil prices and WTI crude oil prices over a period of time, along with references to relevant sources. The report highlights the importance of understanding market dynamics for investment and business development in the crude oil sector and concludes with a summary of the main findings.

Energy Markets and Marketing

Introduction
• The study is important in the sense that it will identify the factors that will indulge
the development of the energy market that will be willing to identify the potential
futures that will be willing to increase their investment in the crude oil market
• The study will identify the supply and demand for the crude oil in the physical and
derivatives market
• Moreover, the study will be identifying pricing trends in the crude market

Contd…
• The factors that are driving in the future market in the crude oil and how it is
impacting in the global market.
• The study will identify the key developments that is happening in the crude
markets and having an emphasis in the future trading.
• The study will further identify the government regulations that is present in the
crude oil market.

Supply and demand analysis related to physical and derivatives market
• Supply and demand of the physical analysis is going to indulge the development
of the business.
• Demand is highly elastic in nature. The development is going to identify the
resource utilisation will allow the incorporation of the business and how the crude
oil is going to indulge the development in the crude oil and oil importing market
and economy is buttering the development of the business.

Contd…
The involvement of trade and the crude oil price is going to incorporate the
development of trading and will be willing to incorporate the business. Through the
innovation in the technical process it is important to send the innovation.

Pricing trends on underlying crude markets
• Price trends is one of the important in the sense that it will be highlighting the incorporation
of the business it is important in the sense that it will highlight the incorporation of the
business and will be crucial in the sense that through the pricing trends is going to indulge
the development of the business.
• It is important in the sense that through the development of the resource utilisation the
economy is going to improve the development of the business.
• Price is quite high for the barrels being produced in the middle east and they are building
the information and the market of the economy more fragile.

Factors driving pricing trends on the futures market
• One of the key factors that is hampering the price trends of the crude oil in the
international market is the global terms of trade and the opportunity costs of the
trading nations.
• Due to the increased level of price elasticity of the crude oils in the international
market, the demand of the crude oils is actually surpassing the supply of the crude
oils and is actually importing on the development of the business.

Contd…
• The future of trading of crude oil is increasing and the price of the crude oil is $80
per barrel and Iran produces about 2.4 million barrel per day and the Middle
Eastern producer’s exports fell by around 1.2mb/d in 2012.
• Through the development of better technology, it will be having big information
to introduce the development of future trend will automatically allow the price of
the crude oils.

Assessment of key developments in crude markets with emphasis on derivative
instruments particularly futures trading
• In order to identify the key developments in the crude oil markets it is required to
identify first the ongoing developments in the technology that are being used in
the global crude oil market.
• Improved technology of dredging has improved the price stability of the crude oil
and the presence of international trade has put the demand of the crude oil in the
sustainable position.
• Finding the alternatives in the form of synthetic oil making is putting less pressure
on the fossil fuels that had been previously used to manufacture the crude oils.
• Most of the globally developed countries used to depend largely on the middle
east countries for the purpose of importing the crude oils.

Examine regulation that may impact the markets
•India was expected to grow as one of the largest producer of the non-petroleum
products. In 2016, the Oil import was US$70.72 billion and in 2017, the oil import
increased to more than US$87.78 billion.
•India retained third spot regarding the consumption of oils. The Indian market has
consumed about 4.69 mbpd in 2017 and in 2016; the consumption was about 4.56
mbpd.
• Between 2000 and 2018, the amount of foreign direct investment that got attracted
in the oil and natural gas industry was around US$ 7 billion. In 2018, responding to
the situation of growing demand in the oils and refinery industry, the Government of
Gujarat invested $700 crore in Liquefied Petroleum Gas (LPG) terminal at Okha.

Contd…
•Between 2000 and 2018, the amount of foreign direct investment that got attracted
in the oil and natural gas industry was around US$ 7 billion. In 2018, responding to
the situation of growing demand in the oils and refinery industry, the Government of
Gujarat invested $700 crore in Liquefied Petroleum Gas (LPG) terminal at Okha.
•Government of India is planning to invest Rs 70,000 crore (US$ 9.97 billion) to
expand the gas pipeline network across the country.
•In September 2018, Government of India approved fiscal incentives to attract
investments and technology to improve recovery from oil fields which is expected to
lead to hydrocarbon production worth Rs 50 lakh crore (US$ 745.82 billion) in the
next twenty years.

Conclusion
• The study is going to highlight the price of the crude oils and how the economy is
going to highlight the incorporation of the business and will highlight the
incorporation of business.
• The study has claimed that in order to indulge the development of crude oil
business and how the economy will be doing the business.
• The country is willing to incorporate the development of the business through the
innovations in the development of the business