Crude oil which is commonly known as petroleum is a liquid found within the Earth. It comprises of hydrocarbons, organic compounds and small amounts of metal. The trading of crude oil is refer to crude oil trading.
Over 87 million barrels of crude oil and natural gas liquids are traded every day. Owing to the demand in developing countries with rapidly growing economies, this figure may increase over time. The trading of crude oil from one party to the other can take place at various points along the petroleum value chain.
Crude oil investing has several advantages over traditional equities for certain trader classes. Contingent on your investment objectives, oil trading, can be used to diversify your investment portfolio. How? Adding oil commodities to an equities-only or fixed-income portfolio can lower the overall volatility since there is no correlation between the asset classes.
As such commodities like oil are useful in balancing price movements in a traditional portfolio. Since commodities have intrinsic values that are independent of currency, they hold their value even in the event of inflation. Given the constant and reliable global demand for crude oil, investing in oil futures and derivatives is a way to profit quickly from the volatile oil prices.
Indeed many major institutional traders buy oil-linked investments for their endowment and pension funds. This is because regardless of fluctuations in supply, demand for crude oil may never disappear. Making it possible for experienced traders with a high tolerance for risk to make substantial profits on low capital outlays with oil ETFs and futures contracts.
Based on the fact that AI will soon become a commonplace tool that is used to achieve operational and business performance, the future of crude oil trading will soon change for good. With the use of cutting edge technologies will make crude oil trading more efficient while improving business resilience. Some of these technologies are AI, real-time data analytics and augmented reality (AR) among others. But that is not all, disruptive business models and low –friction business platforms will help shape crude oil trading in the future.
The emergence of crude oil CTRM on today’s’ global crude oil trading business landscape is timely as crude oil and risk management just got easier with EnHelix. This a great crude trading software that offers trading and risk management solutions and gives crude oil professionals a range of tools and technologies that makes it easier for them to manage credit, risks, and core business operations better.
Contract management, land and production leases, first purchasers, division orders, right of way (ROI) and easement, supply chain, and field services document and workflow management are some of the business activities in the crude oil and gas exploration industry which the EnHelix crude oil CTRM provides premium solutions to.
With EnHelix, scheduling and balancing supplies and opportunities, streamlining contract approval and amendment processes, providing stout accounting for settlement and disbursements and managing land and production leases with division orders billing become a walk in the park.
EnHelix is your best bet for handling your crude trading and risk management concerns because it is designed for the managing of upstream, midstream, and downstream commercial operation. It also provides a ton of energy market solutions that include (among others): eliminating data hand-off between different systems and allowing enterprise IT consultants to modify the system and save time on reconciliations to meet the tight deadline.
Regardless of your niche in the crude oil business, EnHelix oil and gas artificial intelligence provides a sweeping business AI dashboard (that facilitates business decisions via machine learning) and private permissioned Hyperledger blockchain. This means access to marketplace, logistics and settlement blockchain solutions that allow energy companies to easily create private blockchain networks which facilitate smart contracts with business partners, JVs, vendors, banks, and regulators.