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Sunday, April 19, 2009

REBCO Oil Makes a Worthy Energy Investment

By Derek Powell

REBCO Oil is an acronym for Russian Export Blend Crude Oil and is traded globally. The minimum trading unit is 1000 US barrels at a set barrel price. Much of this oil is purchased for delivery and use as home heating fuel, gasoline and jet fuel, although some traders purchase future contracts for investment.

As the price of REBCO Oil will fluctuate, investors can make money in this energy commodity when they buy low and sell high. On the downturn, much money can be lost if buying at a price that the future market would not support.

Trading of REBCO Oil takes place on the Chicago Mercantile Exchange (CME) Globex electronic trading platform, where much of the worlds major commodities and products are traded. The trading symbol is RE. For those who want to conduct transactions off the stock exchange, there is the New York Mercantile Exchange (NYMEX) ClearPort clearing website.

Invest in REBCO Oil when you buy futures or options at a given price. The purchase price will fluctuate, so you will want to be sure that you are buying at a good price. The purchase price will not be the same as the futures price, so bear in mind your level of investment risk.

REBCO Oil is traded by those who have a direct interest in petroleum products, buying and selling. These will include refiners, oil and fuel companies, manufacturers, oil traders, global suppliers, exporters, importers, trading agents and wholesalers.

The trading price of REBCO Oil is determined by several factors, just as in other crude oil products. Several factors are involved including the chemical makeup of the oil, financial terms and even the delivery locations. As no crude oil type is the same, the differences in chemical and molecular properties will directly affect the oil's quality, giving rise to production, yield and environmental concerns.

The crude oil produced in Russia is classified as medium gravity sour crude, which means it has medium density and contains large amounts of sulfur. Depending on the sulfur requirements of a given country, this type of petroleum might need more refining to ease environmental concerns. As a result, REBCO Oil may not be in as high demand as light, sweet crude oil that has no sulfur concerns. Less demand translates into a lower purchase price.

Russia is one of the worlds largest exporters of REBCO Oil and is the second largest producer of crude oil in the world. On a daily basis, about 4 million barrels of the oil is exported to refining markets. Future contracts hold several benefits, among them market transparency, dependable pricing and financial protection against the risk of default. They are exchanged through the New York Mercantile Exchange in partnership with the Russian oil industry and Expertica Consulting Ltd. - 23199

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