Analysing Factors Affecting Crude Oil Prices

Click to edit Master subtitle style Made By: Tarunpreet Singh 11BSP1070 IBS Gurgaon

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Amrapali Aadya

Established in 1988 Founded by Sanjeeva Kumar Sinha Financial Division of Amrapali Group Objectives Affiliations Products & Services
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Commodity Market
A

market place for commodities categories of commodities

Various

Agricultural Non-agricultural

Types of markets
OTC Exchange based markets
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Commodity Derivatives

value based on underlying commodity Investment tool Main types

Futures Options

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Constituents of Trading Process

Trading System Clearing of Trades Settlement of Trades Risk Management

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Market Participants
Hedgers Speculators Arbitrageurs

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Crude Oil as a Commodity

Most widely used energy material in the

world

Made up of Hydrocarbons A number of products derived from it Well-known types of crude oil
v Brent Crude v OPEC Crude v WTI Crude
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Factors affecting crude oil prices

Supply Demand Global Oil inventories Global Equity Markets Dollar Speculation
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We still need to work extra hard to protect consumers from factors that should not affect the price of a barrel of oil. ... We cant afford a situation where speculators artificially manipulate markets. President Obama, April 1 7, 2012

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Short Term indicators

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Findings of Primary Research

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Findings of Secondary Research

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Research Methodology

Objectives of the Study Research Design Scope of Research Sources of Data Sampling Plan Limitations of the Study
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Challenges Faced

Getting acceptance of the traders Checking the reliability of data Maintaining calm while trading Enjoying routine tasks

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Conclusions

Demand-supply factors are relevant but not the sole factors Dollars impact is significant Oil inventories have gained more importance Equity-Commodity market a link established Speculation has become a main factor
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Recommendations

Look at the fundamentals as well as non traditional factors For investors: Look at international events, & not just domestic events For companies: hedge the risk if crude oil is one of the inputs.

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Thank You

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