Brief introduction of low sulfur light crude oil
Desulfurized crude oil (light)
Crude oil is the most active commodity in the world. In the past ten years, the New York Mercantile Exchange (NYMEX) has become the most circulating crude oil trading market in the world, and also the largest futures contract trading of a natural commodity in the world. Because of its good trading liquidity and price transparency, its futures contracts are often used as the main pricing benchmark in the world.
Low sulfur light crude oil has become the first choice for refiners because of its high yield of high-value products such as gasoline, diesel oil, civil fuel oil and aviation fuel.
Brent crude oil
Brent crude oil is a kind of low-sulfur light North Sea crude oil, which is the benchmark grade of the crude oil market, and is widely traded in a form different from the New York Mercantile Exchange low-sulfur light crude oil futures trading contract. Brent crude oil has a daily output of about 500,000 barrels, most of which are refined in northwest Europe, but a large number of them are transferred to the Gulf region, the east coast and the Mediterranean region of the United States. Crude oil was shipped in Sulom Bay, British Isles.
The relative density and sulfur content of crude oil in China are different from place of origin.
This is a sales contract for delivery in June. By June, the price of crude oil may be high or low.
If it is high, investors who hold bills (sign purchase contracts) will earn money.
If it is low, the investor who holds the sell order (signs the sell contract) will make a profit.
If by June, the price is 123, then the futures speculators will not lose money (losing the handling fee, ignoring it).
However, from now on, the price can't remain unchanged. As long as there are changes, people who buy and sell contracts will lose money and earn money, and they don't have to wait until June to close their positions. Futures can be closed at any time after opening (trading).