Confused.Oil!

One of the primary reasons why it is so crucial to strictly adhere to your tailored made rules when it comes to daytrading is some sort of absence of professionalism in financial news providers. You really don't want to always listen to them and make business decision. News media has become indistinctly speculative .What I mean by that is that they are slowly killing their original purpose as a credible provider of objective, I repeat, objective, information.Their primary target is money. They need as many viewers as possible to tune their channel in order to keep their business runnig. And to achieve that, they need sensational news, which can be very tricky and can only cause harm, especialy in such a difficult times like these. For this reason, I have followed 2-3 major unnamed business media sources, who by the way very often copy from each other without making relevant effort worth their name, with their "hot" headlines of crude oil futures for the period between 11th of June to the 24th of July.We are talking about economy reports from supposedly most reputable media providers within just six weeks . Needless to say that these are very sensitive times with regards to the state of global economy. We are talking about people who got this power to shake the system if they want to and thus I would like to think that this is exactly the place where credibility, responsibility and health and wise judgments are top priorities. Well, sadly, here's what you'll get!

"OIL CLIMBS ABOVE $72 ON ECONOMIC RECOVERY HOPES"

"OIL FALL TO NEAR $69 AS OPTIMISM ON ECONOMY WANES"

"ECONOMIC RECOVERY HOPES TAKE OIL ABOVE $66"

" OIL FALLS NEARLY 4% ON WEAK U.S. ECONOMY"

"Crude oil rose for the first time in three days on signs of recovery from the global recession, prompting optimism fuel demand will increase."

"Crude oil in NY may fall below $45 a barrel by the end of August as the global recession stalls a recovery in fuel consumption in the U.S. , the world's biggest energy user", **** said.

"Oil rose slightly to settle above $63 Monday as optimism about a potencial global economic recovery lifted markets and expectations of a turnaround in fuel demand."

"OPEC's 2009 world oil outlook added to the gloom as it said world demand for oil make take years to recover from the slump of 2009 because of economic weakness and demand destruction."

CHARTS PREDICT: Oil Rally Set to Break $78
CHARTS PREDICT: GET Used to $50-$70 Oil

Oh boy....

Somebody does really lousy "job" out there. One would think it's damn funny. But it is really not. It's actualy everything but funny. It is frustrating. It's even more sad, that these people often like to call themselves experts, top analysts, pro's and yet proudly taking themselves very seriously. Some people may call it profession. With all respect, I call it outrage, conceit and unfortunately even the lack of education, bringing very little value to the business. Like the real Pro's say....every child can come up with some conclusion on the left side of the chart.

But not to be only critical, fortunately for us, there are still some out there who do their job right, minor percentage of those who still are capable provide serious and credible supply of informations and can be trusted.

Thus, listen to the others but make your own conclusion, keep your ears and eyes open, you be the boss of your decision. That's how winners play.

Fueling The Formula 1 "Car"

Despite the current economic turmoil, recent triple digits in oil prices, financial insecurity spreaded all over the globe and taking its' tolls across the very wide range of business, there are still some seem to having a lot of fun.

Let's have a look what it takes to satisfy enormous thirst of the F1 racing monopost during the race through the whole year. Please bear in mind that this calculation is based on rough estimation of gasoline consumption in the day of race only and can vary on very specific and different racing conditions, like weather, altitude, number of corners, safety car involvement or drivers retirement from the race etc. These all and much more can have significant effect on gasoline consumption during the race.

In current Formula One race car, fuel consumption can reach 180-220 litres in a 300 km race distance. Having an average lenght of 60 laps, we are looking at 3.3L of gas per lap or approximately 66L/100km consumtion per one car. Hm.

Now, with 17 races in formula one calendar we are looking at 3400L of gasoline to be injected into one car. Provided that all 21 cars on the starting grip will make it through the whole race and we are getting outstanding number of 71400L of gasoline. This excessive need of fuel requires supply of 1015 barrels of oil.

Again, let me remind you that this amount of fuel is covering the consumption of gasoline for the days of race only, sunday, excluding practice and qualifying sessions during the whole racing weekends, speak nothing of testing during the year. Feel free to do the math :).

In addition, there is 200 litres of engine oil, 180 litres of gearbox oil, 80 litres of hydraulic fluid, 20 litres of coolant and several kilos of grease also needed to get this thing running in the right pace during the whole season.

"Money,money, money.....must be funny.....( whatever the economy)......in the rich man's world"

How does it get into my car's tank?

After crude oil is refined into gasoline and other petroleum products, the products must be distributed to consumers. The majority of gasoline is shipped first by pipeline to storage terminals near consuming areas and then loaded into trucks for delivery to individual gas stations. Gasoline and other products are sent through shared pipelines in “batches.”

Since these batches are not physically separated in the pipeline, some mixing or “commingling” of products occurs. This is why the quality of the gasoline and other products must be tested as they enter and leave the pipeline to make sure they meet appropriate specif-ications. Whenever the product fails to meet local, State, or Federal product specifications, it must be removed and trucked back to a refinery for further processing.

After shipment through the pipeline, gasoline is typically held in bulk storage terminals that often service many companies. At these terminals, the gasoline is loaded into tanker trucks destined for various retail gas stations. The tanks in these trucks, which can typically hold up to 10,000 gallons, usually have several compartments, enabling them to transport different grades of gasoline or petroleum products. The truck tank is where the special additive packages of gasoline retailers get blended into the gasoline to differentiate one blend from another. In some areas, ethanol may be “splash blended” in the tanker to meet environmental requirements. When the tanker truck reaches a gas station, the truck operator unloads each grade of gasoline into the appropriate underground tanks at the station.

Barrel of Oil - What's in it?

Crude oil is sold between countries in quantities called barrels. (The same measurement is used to sell whisky.)

One barrel of oil is the same as:

• 159 litres (about 80 large fizzy drink bottle)
• 35 gallons (enough to fit in the petrol tanks of about 4 cars)
• 280 pints (a lot of bottles of milk)

The weight of a barrel depends on where the oil comes from. However, there are about 8 barrels in a tonne.

You could fit nearly 2 million barrels of oil into a football stadium - or one and a half tankers. This is how much oil we use in the UK every day.

Most gasoline is made from crude oil, formed from the remains of plants and animals that lived hundreds of millions of years ago. These remains were covered with layers of sediment over time. With extreme pressure and high temperatures over millions of years, these remains became the mix of liquid hydrocarbons (an organic chemical compound of hydrogen and carbon) that we call crude oil. Refineries break down these hydrocarbons into different products. These “refined products” include gasoline, diesel fuel, heating oil, jet fuel, liquefied petroleum gases, residual fuel oil, and many other products.

The largest share of the 42 gallons of crude oil contained in a standard barrel ends up as finished motor gasoline. Motor gasoline accounts for 19.65 gallons of the finished product. Next in line is distillate fuel oil at 10.03 gallons. Jet fuel comes in a rather distant third place in the refinement process. Of the original 42 gallons of crude oil in a barrel, that portion which will end up as jet fuel is 4.07 gallons. Residual fuel oil accounts for 1.72 gallons of the overall refined product.

Other petroleum products that are created from a barrel of oil during the refining process include: still gas, petroleum coke, liquefied refinery gas, asphalt and road oil, various oils for foodstocks, lubricants, special napthas, kerosene, waxes and an assortment of other miscellaneous products. (It is important to note that the different end products that can be produced from a barrel of oil differ in their percentages depending on what part of the world the crude oil originated from in the first instance.)

Watch & Learn

Crude Oil vs US Dollar