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Energy in the commodities market includes:
-Brent crude oil
-Crude oil
-Furnace oil
-Middle east sour crude oil
The Brent crude oil is described as a sweet crude oil rigged from the North Sea.
In terms of weight it is comparatively lighter than al other forms of crude oil.
The Brent crude oil is considered a benchmark, across the globe, which is used
to decide the price of this form of energy not only in Europe, but also other
parts of the world. India is one of the largest buyers of this particular crude
oil.
Crude Oil is generally defined as a blend of the hydrocarbons that are present
in the liquid form within the natural underground reservoirs. It is slated that
oil and gas, together make up 60 per cent of the total world's major consumption
of energy.
The various industries that rely on the extensive use of crude oil include:
-Oil cooking and otherwise
-Lubricants
-Transportation
-Petrochemicals
-Pesticides/insecticides
-Paints
-Perfumes
They’re prices are affected by fluctuation in the price of crude oil.
Furnace Oil is commonly used as an industrial fuel. It is described as a dark
viscous residual fuel. Globally the furnace oil is better known as fuel oil. The
middle east sour crude oil is the term given to the crude oil provided by the
middle eastern nations, which account for the largest energy production in the
world.
In India there are various factors that influence the fuel prices – demanded and
supplied:
-The current scenario as per demand-supply requirement
-Weather
-Seasonal cycle
-The general manufacturing scenario
-Global demand mainly from developing nations
-Fluctuations in the Dollar rate
-Stocks trading fluctuations
-Oil price announcements
In fact, India is placed on the list of the ten prime countries that consume
maximum energy in the form of oil. The country imports approximately 70 per cent
of the aggregate domestic consumption, with no contribution in the export
sector.
In spite of this the country does go through a shortage of oil. This causes an
increase in energy import, each year.
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