Petroleum Zones
WHAT IS DOWNSTREAM?
(UPSTREAM >> MIDSTREAM >> DOWNSTREAM)
Downstream Products include:
Gasoline, diesel, kerosene, jet fuels, heating oils and asphalt for building roads; synthetic rubbers, fertilizers, preservatives, containers, and plastics, artificial limbs, hearing aids and flame-retardant clothing to protect firefighters, paints, dyes, fibers, …the list is endless.
CFD TRADING
(contract for difference)
SPOT CONTRACTS: The price of the spot contract reflects the current market price for oil. Spot Price: This is the cost or price of selling oil immediately on the spot – instead of at a set date.
FUTURE CONTRACT: A futures contract is an agreement to buy or sell a quantity of oil at a specified date for a specified price. As standardized instruments for WTI and Brent; the standard contract is for 1,000 barrels of oil, so a $1 movement in price is equal to $1,000 in contract value.
The Futures price reflects the price buyers are willing to pay for oil on a delivery date set at some point in the future.
OPTIONS CONTRACT: This is similar to Futures Contract; but here, there is no obligation to trade if you do not want to.
You are given the right to buy or sell an amount of oil at a set price on a certain expiring date, but you are not compeled to use your option.