Crude oil mini contracts are smaller-sized oil futures designed for individual investors. They offer a way to trade oil with reduced risk and capital requirements compared to standard futures contracts. This makes them accessible for traders looking to speculate on oil price movements with a lower financial commitment.
Introduction
Crude oil, often referred to as "black gold," is a highly valuable natural resource crucial to the global economy. It consists of hydrocarbon deposits found in underground reservoirs and varies in viscosity and colour, ranging from shades of black to yellow. Once extracted, crude oil is refined into essential products like gasoline, diesel, and petrochemicals, which fuel a wide range of industries worldwide.
Despite being produced by a limited number of major companies, crude oil is traded on a global scale, with approximately 80% transported via waterways and the remainder through pipelines. The Middle East holds the largest share of oil reserves, accounting for 48%, followed by significant reserves in North America and Africa. The Organisation of the Petroleum Exporting Countries (OPEC) plays a pivotal role in the industry, controlling around 40% of the world's crude oil production and holding 75% of proven reserves.
Factors that Impact Crude Oil Mini Price
- OPEC output or supply: OPEC, a key oil-producing group, greatly influences global oil prices. When OPEC adjusts its production levels, it directly impacts the supply of crude oil. A reduction in output typically leads to higher oil prices, while an increase in output may drive prices down.
- Changing scenarios in oil demand: Economic growth and industrialisation in emerging and developing countries boost the demand for oil. As these economies expand, their need for energy, especially crude oil, grows, which can tighten global supply and affect prices.
- Refinery utilisation rate: The refinery utilisation rate shows how much refinery capacity is being used. High utilisation rates suggest strong demand for refined products, which can push crude oil prices up. Conversely, lower utilisation rates might indicate weaker demand, leading to lower prices.
- Global geopolitics: Political instability in oil-producing regions can cause price swings. Conflicts, sanctions, and diplomatic issues can disrupt oil supply chains, leading to higher prices due to concerns about reduced availability.
- Weather Conditions: Severe weather events, such as hurricanes and storms, can interrupt oil production and transportation, especially in crucial areas like the Gulf of Mexico. These disruptions can limit supply and drive prices up. Seasonal weather patterns, like increased heating demand in winter or transportation needs in summer, can also impact oil prices indirectly.
Things to Consider Before Trading in Crude Oil Mini
- Regulatory environment: Familiarise yourself with regulations and tax implications related to crude oil trading. Compliance is crucial to avoid legal issues and penalties.
- Market volatility: Due to the changing market dynamics, crude oil prices can experience significant volatility. Stay informed about factors causing price swings to navigate market fluctuations effectively.
- Inventory Levels: Monitor crude oil inventory levels, as they can impact prices. High inventories may indicate a potential oversupply.
- Renewable Energy Trends: Consider the growth of renewable energy sources, as they may compete with crude oil in the long term.
Crude Oil Mini Expiry Date Calendar 2024
Contract launch calendar for Crude Oil Mini for the year 2024
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Contract Month
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Contract Expiry Date
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January 2024
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January 19, 2024
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February 2024
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February 16, 2024
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March 2024
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March 19, 2024
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April 2024
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April 19, 2024
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May 2024
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May 20, 2024
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June 2024
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June 18, 2024
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July 2024
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July 19, 2024
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August 2024
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August 19, 2024
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September 2024
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September 19, 2024
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October 2024
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October 21, 2024
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November 2024
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November 19, 2024
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December 2024
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December 18, 2024
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How to Trade in Crude Oil Mini via Angel One?
- Open a Demat and Trading Account: First, open a Demat and trading account with Angel One.
- Activate the Commodity Segment: Once your Demat account is ready to trade, make sure you activate the commodity segment in order to trade crude oil mini contracts and other commodities.
- Monitor the Market: Track exchanges like MCX (Multi Commodity Exchange) and NCDEX (National Commodity and Derivatives Exchange) to stay updated on live crude oil mini prices, market trends, and relevant news.
- Place Your Trades: Use the Angel One trading platform and leverage indicators like Bollinger Bands, RSI, and MACD to build your commodity trading strategy.
- Manage Your Risk: To control your risk and guard against big losses on your trades, use measures like stop-loss orders.
