Oil Trading Has Never Been Easier to Profit From
The highly lucrative possibilities available through trading in crude oil, and other commodities, gives traders who are exploring this investment venture the chance to possibly earn more than they would have with basic currency trades like in forex.
Trading crude oil is far simpler than many assume. All it takes is money to invest and the right trading brokerage. This is even something many traders can do, and prefer to do, online.
Crude Oil trading relies heavily on supply and demand. This makes the market forces involved in moving the price of oil relatively easier to read than in other markets, such as stocks and currencies. Commodity trading is, therefore, much easier to access and use. It would be a shame to see such potential wasted.
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President Obama Endorses Change in Mid-East, Oil Prices Falter
President Barack Obama’s endorsement of the democratic uprisings in the Middle East, now known as the ‘Arab Spring,’ has caused enough of a buzz that many oil investors appear to be expecting some shifts in oil prices as reforms are either anticipated or resisted. Whether this buzz will persist through the end of the trading week is yet to be seen, but many adjustments have already been seen since yesterday morning.
Oil prices yesterday went soaring after US stockpile data revealed zero growth for the past week. Thursday’s publication of natural gas storage in the United States, however, was enough to send commodity prices back down. After peaking near $101 a barrel, the price of oil fell back to $98 on moves by commodity investors to sell commodities amid an expectation for decreased demand following soft manufacturing data in the US.
The US Philly Fed Manufacturing Index revealed a stark figure well below forecasts. The result was for many online investors to turn towards interest rate differentials between the US and Europe in valuing their forex portfolios. But the news also generated a shift away from commodities as demand is seen to be faltering alongside industry and manufacturing. Should further data out of these sectors continue to disappoint, traders are likely to see some further pressure added to oil prices in anticipation of a downturn in economic activity.
Crude Oil Prices Jump over $100 as Inventory Growth Halts
With the EUR/USD consolidating near the 1.4300 price mark, online oil traders appear to be reacting in similar fashion to the price of crude oil. The price for a barrel of oil has so far today jumped above $100 after this week’s US oil stockpile figure showed zero growth.
Crude Oil prices found support at $98.00 a barrel and bounced beyond $100 without generating a backlash so far. The oil inventory report came after two consecutive weeks of over 3 million barrel growth in US stockpiles.
Analysts had expected oil prices to hold between $97 and $100 a barrel as the US undertook its wave of oil hoarding. This week’s data, however, appears to have burst that bubble and speculators now see that supply may have met demand in the short-term and oil traders could see the price continue its climb as the value of the US dollar also takes a hit.
Crude Oil Inventories Expecting Third Surge, Prices Steady
The price for a barrel of Crude Oil dipped mildly in today’s trading ahead of expectations for another increase to US stockpiles. Many analysts had predicted a mild rise in oil inventories from last week, possibly as high as 1.4 million barrels, by some estimates.
The oil inventories figure is tricky when it comes to gauging its impact on the world of price valuation. Higher inventories can either represent low demand or high supply, or both. Either way, a surge in oil inventories tends to push prices lower in the short-term.
But there is a strategic element to the inventory figures that makes the data difficult to assess. Oil stockpiles are also connected to US energy policies and national security assessments. If the US administration believes its threat level is highly elevated, it may enact a policy of boosting stockpiles to weather the storm of any future short-fall.
The net effect of this oil inventory surge may create downward movement in the price of oil, which it appears to have done, but could be offset by other data. Traders should watch for statements regarding the administration’s sentiment towards global risk as it could indicate future policy changes in regards to inventory data.
US Dollar’s Slump Pushes Crude Lower?
The price for a barrel of Crude Oil recently lost a measure of support, oddly coming as the US dollar also slumped. The downtick in greenback values became pronounced Monday afternoon following a shift back into the euro from a return to interest rate differential trading.
Soft fundamentals in America and solid inflationary figures in the euro zone eased tension over the European debt concerns and allowed many investors to reconsider the difference in interest rates between the US and Europe.
Crude Oil prices tend to get supported from a downward movement in the USD, but yesterday was an exception. The price for a barrel of oil shifted downward, with $97 clearly within reach.
Commodity Prices Failing to Find Support
Though the dollar has lost the momentum from last week’s jump, the price of commodities like Crude Oil still appear to be without support. The dollar’s rise pushed against the price of Crude Oil, but the dollar’s decline has so far failed to materialize in a similar move among oil prices.
Oil traders have begun to push against speculators’ ramp up in commodity prices and analysts are calling for a lower price after a number of high profile individuals linked with the oil industry made remarks that oil supply was in line with global demand. Since then, the price has failed to find significant support beyond $99 a barrel.
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