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PETROLIUEM & FUEL BUSINESS

Prominent Oil & Gas Companies Are Gaining Momentum In Terms Of The Aviation Fuel Market" Major companies around the world dominate the global market. Shell and BP are leading companies in the aviation fuel industry supplying across the globe. Apart from these, Total, Chevron, ExxonMobil, Gazprom, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited are leading the global market.

We strive constantly towards establishing a long-term trade relationships with our clients. For us to do this effectively, as commodity traders we need access to strategically located storage facilities and financial credit across the globe.

CRUDE OIL

Crude oil is unrefined petroleum that occurs naturally and is mostly composed of hydrocarbon deposits. It’s a finite resource that can be refined to produce everyday products like gasoline, diesel fuel, and petrochemicals for plastics.
 

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Typical Composition of Crude Oil

Element.          Composition[wt%]
Carbon                83.0-87.0
Hydrogen            10.0-14.0
Sulphur.               0.05-6.0  
Nitrogen.             0.1-0.2  
Oxygen.               0.05-2.0
NI.                       <120ppm
V.                        <1200ppm


 

NATURAL GAS

Natural Gas trading is popular among traders due to its volatility. This is due to a multitude of causative factors which can be capitalised on with thorough research and appropriate market timing. It’s important for traders to know what affects Natural Gas prices, such as weather, supply and demand.

Typical Composition of Natural Gas

Methane-CH4-70-90%
Ethane-C2H6-0-20%
Propane-C3H8
Butane-C4H10
Carbon Dioxide-CO2-0-8%
Oxygen-O2-0-0.2%
Nitrogen-N2-0-5%
Hydrogen sulphide-H2S-0-5%
Rare gases-A, He, Ne, Xe-trace

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Typical Sulfur Content in Coal

Anthracite Coal : 0.6 - 0.77 weight %

Bituminous Coal : 0.7 - 4.0 weight %

Lignite Coal : 0.4 weight %

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COAL

Commodity traders need excellent peripheral vision to understand the interconnected nature of the global economy. Conditions in commodity markets can change rapidly and traders have to remain alert to many micro and macro factors. Economic cycles, geopolitical developments and technical factors all have an impact.

Coal trading is one of the most profitable business these days but one effective technique to ensure smooth and successful operation is to be able to determine if there are amazing business opportunities in your targeted location. Establishing an ideal business plan also entails achieving positive results.

Typical Moisture Content in Coal

Anthracite Coal : 2.8 - 16.3 weight %

Bituminous Coal : 2.2 - 15.9 weight %

Lignite Coal : 39 weight %

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FUEL

Global Jet Fuel Market is valued at approximately USD 192.0 billion in 2020 and is anticipated to grow with a healthy growth rate of more than 3.5 % over the forecast period 2021-2027. Aviation fuels are petroleum-based fuels used in gas turbine engines for aircraft propulsion. 

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Supply of oil and petroleum products does not come solely from wells and refiners. Traders, producers, consumers and countries all maintain large inventory stocks in oil tanks located strategically around the globe. Traders keep tabs on tankage to know what capacity is available to them should they need to store stocks at particular locations. They also monitor tankage to identify potential sources of supply.

Conflict in oil-rich areas and international sanctions can have a major impact on supply. Both fiscal and security policy can affect supply and demand for oil. The US 700-million-barrel Strategic Petroleum Reserve (SPR) is the world’s largest emergency supply. On several occasions, the US government has bought and released stocks to and from the SPR to reduce and supplement supply. Traders need to be aware of changes in policy.

Availability of Tankage

Geopolitical Developments

The spot market (for immediate delivery or receipt) in oil is a small fraction of the world oil market, but it sets prices for a much larger volume of trade. Every shipment has specific qualities and each is priced individually. Almost always this price is expressed as premium or discount to a benchmark price. Traders monitor the key benchmarks to gain insight into both absolute and relative price movements.

Benchmarks

Traders monitor the impact of natural cycles, economic trends and global events on supply and consumption levels in different parts of the world. They also need to know about a range of technical factors; these might include a lack of local infrastructure constraining supply or seasonal variations in demand.

Bottlenecks, Peaks
and Trough

Product can come from multiple sources. In a competitive industry, many transactions are only doable with narrow margins. Traders can secure competitive advantage through a combination of keen pricing and efficient logistics. They need to assess the real cost of the product at the point of delivery. For instance, acquiring oil inland and transporting it by barge may be more cost-effective than bringing the same shipment to port using the road network.

We at Zastars believe that transporting commodities from where they are produced to where they are consumed is the most observable aspect of the commodity trading business.

Locations and Logistics

Generally, commodity traders are less directly interested in the absolute level of commodity prices than in geographic or quality price differentials between different grades of the commodity. They aim to identify a price differential that makes it profitable to move commodities around the world

and transform them. To do that, they need a solid working knowledge of the chemical constituents of the commodity.

Product Specifications

Traders may decide to acquire commodities with a view to blending multiple commodities. They must assess the cost and effectiveness of combining commodities to create a synthetic blend. They also need to identify when and where blending can take place and know where other blending ingredients can be acquired

Blending Opportunities

We at Zastars believe that transporting commodities from where they are produced to where they are consumed is the most observable aspect of the commodity trading business.