Commodity Futures - An Overview

New York-based executive Eitan Misulovin takes part in philanthropic activities that include support of Friends of Israel Disabled Veterans-Beit Halochem and Chabad Young Professionals UES. Professionally, Eitan Misulovin has achieved success as a developer and manager in the real estate sector. 

In addition to his real estate work, Mr. Misulovin serves as a manager at Pinnacle Fuel LLC. Founded in 2012, Pinnacle Fuel is a merchant of physical commodities that engages in the procurement, blending and logistics of physical petroleum products and offers a variety of blend stocks and finished goods to its clients. Together, these services support the firm’s commodity trading activities and help expand its reach to end users worldwide. 

Rather than trade stocks or bonds, commodity trading firms deal in commodities, basic goods that are uniform across the marketplace, such as gold, oil, natural gas or metals. Investors may use one of several means to access commodity markets. These include investing in the stock of companies involved in a specific commodity market, such as an oil company. Likewise, some exchange traded funds, mutual funds, and index funds invest in commodity markets. 

Futures stand as one of the more common commodity trading techniques. A “future” is a contract in which a buyer and seller agree to a set price for a commodity. However, the actual transaction does not occur until a predetermined date. Buyers benefit from this approach in that they can avoid price fluctuations, while sellers lock in guaranteed prices.

Futures allow huge returns for investors on the right side of trades, but they are very volatile and carry a great deal of risk. Investors often include options in a futures contract that allow losses to be minimized if the price of the commodity does not move in the anticipated direction.

Types of Real Estate Investments

Seasoned executive Eitan Misulovin has more than 15 years of experience in wholesale distribution, trade, and marketing of petroleum products worldwide. Also an entrepreneur and real estate investor, Eitan Misulovin has made investments for acquisition, discovered unique properties, and managed structural upgrades to existing buildings. 

Here are some types of real estate investments. 

1. Houses, townhouses, apartment buildings, and vacation homes are all residential real estate investment properties, where the owner is paid by people who will live in the building. The owner and residents sign a lease agreement for a pre-determined length of time, with 12-month leases being the most common. 

2. Retail real estate investments often involve multi-year leases, providing a stable cash flow for the owner. Besides base rent, retail property owners also may get a percentage of the tenant’s sales. 

3. Mixed-use real estate investment properties combine types of real estate within one project. Because this type of investment is diversified, there is less risk for investors.

What is the 637 Registration Program

Serving as manager of Pinnacle Fuel LLC, accomplished business executive Eitan Misulovin takes charge of the company’s chain of operations. Eitan Misulovin’s responsibilities include business development, procurement, marketing and distribution. As a large supplier of petroleum products, Pinnacle is a registered 637 Program party.

Under the Internal Revenue Code, all entities that engage in activities that relate to excise tax must obtain registration with the Internal Revenue Service (IRS) before starting those activities. On the other hand, in order to receive the benefits of the excise tax, whether in buying or selling tax-free goods or filing an excise tax claim, all entities must first obtain registration with the IRS as well. To apply under this program, the entity must submit a duly accomplished IRS Form 637, also known as Application for Registration (For Certain Excise Tax Activities).

In the IRS Form 637, the applicant finds a list of activities allowed to register under the program. The applicant may apply and be approved for its relevant activities accordingly. To be registered and retained under the program, registered entities must continuously comply with the standards and rules, which the IRS refers to as “registration tests.” Depending on an entity’s activity, registration tests may include periodic audits by the government, as well as surprised inspection of the business premises during normal operating hours. Ongoing reporting of activities with proper approved counterparts is a requirement. Further, compliance with the stringent rules and regulations set forth by the government are keys to the benefits of ownership and use of Form 637 for approved parties.

Classifications of Oil

Eitan Misulovin, manager at Pinnacle Fuel LLC, has worked as a merchant trader of physical petroleum products for more than 15 years. In his work at the New York-based company, Eitan Misulovin covers a wide range of petroleum products for sales and distribution to major commodity and oil companies, as well as crude oil and related blend stocks.

Crude oil usually receives its classification based on the production location, but even within locations, oils can differ. Further classification uses the density of the petroleum as well as its non-hydrocarbon components, which in turn factors into the price of a given barrel of oil. While different types of oil are not necessarily better than one another, they have different applications, which can drive demand.

Barrels of oil can be termed sweet or sour and light or heavy. A sweet barrel of oil possesses relatively little sulfur compared to a sour barrel. High-density petroleum, with many long-chain hydrocarbons or high carbon content, is referred to as heavy, while lower-density oils or those with more hydrogen than carbon are called light.