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Oil Trading

Oil trading is one of the most sought after commodity in the world other than Gold. I’m sure most of you already know why the price of oil will continue to rise in the future. As well as Gold, oil is a very rare commodity. But apparently that’s not the only factor that supports the continued rise in oil prices.
Here are some factors that can affect the movement of the price of Oil:

1. Peak Oil
The jump in world oil prices are supported by a popular theory called the theory of “Peak Oil”. This theory broadly states that world oil production will continue to increase so as to achieve the peak, and will decline with the speed increase on the previous production. Largest oil field in Saudi Arabia has been in declining production, as well as second in the Cantarell oil field located in Mexico.

2. Geopolitics
Political instability in the Middle East that occurred as in Libya, Egypt, Algeria, Yemen, Jordan and Bahrain recently supported to contribute in world oil prices skyrocketing today. Middle Eastern countries are known as a supplier of oil in the world, instability in the area feared would lead to oil supply shortage in the world market.

3. Speculation
Oil as a commodity also become the target of the trading market trader. In stock trading, oil is known by the name / symbol WTI Crude Oil traded through contracts (futures). Oil trading activity is very crowded on Wall Street. Allows traders to speculate to profit from volatility / fluctuation of oil price contracts stock market trading occurs.

4. Industrialization
China and India is a country that can be said to advance its economy rapidly. Both countries are in desperate need of oil as “fuel” for the passage of industrialization in the country. That China has defeated the United States as the largest consuming energy resources in the world. International Energy Agency stated that China consumed 2.5 trillion tons of oil in the year 2010.

5. Population
Egypt is just one example of the few countries in the world are experiencing a population explosion. Officials in Egypt might think that it’s easier to overthrow a dictator in Egypt rather than to feed the people of Egypt. Egypt’s population has increased by 3-fold in the past 50 years. Where the problem requires a very large supply of food, and therefore require oil as an energy source on the machines that manufacture food sources.

6. Factor Weather
World oil prices will tend to rise when the cold season. Where the population in European countries and America needs an energy source to turn their heating machines when when winter arrives.

7. Yet Availability of Renewable Energy Oil
Until now, oil is still the main source of energy used around the world. Although several countries have developed several alternative energy sources, but has not been able to show significant results. Nuclear energy is actually the most potential to replace oil, but the problem is still a bottleneck ecosystem heavy, especially after the tragedy of Chernobyl and Fukushima reactors. Oil crisis in the future is inevitable, and the countries of the world started racing to keep looking for alternative energy.

Source

Oil Trading
 
One of the best commodities outside which the price right now is about $100-$105 per barrel, and yeah i agree with you this commodity has many speculation because Oil still used by a lot of people around the world and with those speculators we can see the price getting uncontrolled sometimes. But the price will skyrocketing if the world can use Solar System or other renewable energy.
 
One thing I'm sure about oil is that no matter what will happen oil price will go up in the long run. That's why if you are long term trader you can really earn great amount of money in here. This is what I like to suggest for those who want to earn big in forex trading and want to trade long term.
 
@budado: Yes, Oil will rise as the stock of that thing is getting smaller. But in around 50 years maybe Oil is not popular thing to trade anymore, except for Gas. But for around 20 years i think Oil price will stilll rise.
 
News about oil trading on 18.08.2014
Oil prices eased in Asian trade Monday, but retained support from the latest round of tensions between Ukraine and Russia which sparked concerns of a full-scale military conflict, analysts said.
US benchmark West Texas Intermediate for September delivery was down 62 cents at $96.73 while Brent crude for October fell 92 cents to $102.61 in afternoon trade.
Desmond Chua, market analyst at CMC Markets in Singapore said oil prices were supported by news on Friday that Ukraine had shelled Russian armoured vehicles after they entered its territory. Moscow denied the incursion.
Ukrainian President Petro Poroshenko said government artillery had destroyed "a considerable part" of a Russian military convoy purportedly carrying humanitarian aid into rebel-held east Ukraine.
The West and Kiev fear the convoy could be a "Trojan horse" to help the pro-Kremlin rebels, or provide Moscow with an excuse to send in the 20,000 troops that NATO says it has massed on the border.
The foreign ministers of Ukraine, Russia, Germany and France are locked in talks in Berlin to defuse the tense situation. Hosts Germany said late Sunday the "difficult" talks ended with no concrete advances but with "some progress".
Investors fear a full-blown military conflict between Russia and Ukraine will disrupt Russian energy exports to Europe.
Russia is the world's second largest oil producer, while Ukraine is a major conduit of Russian gas exports to western Europe.
Oil prices have seen a build in risk premium after Russia seized Crimea in March and voiced support for the separatists in east Ukraine. Armed insurgencies in crude producers Libya and Iraq have also contributed to the price surge.
 
Its good to understand how to do fundamental analysis on oil. First of all oil price is base on supply and demand.The more oil the oil producing country produce the more the price goes down. The more the demand the price goes up. So we must check if oil production increase or decrease.
 
It's mainly fundamental analysis that gives you a better knowledge about trading in oil. Oil trading is good for those who are good in understanding the rise and fall of this commodity over a period of time and those news impact that reflects the price.
 
When I was a new Forex trader then, I liked to use only Forex trading currencies. But, after being a professional Forex trader then I start to use Gold, silver, Crude oil, Indices and CFDs. But, first important point was for me to select a regulated trading broker which has this trading positions. Then, I started to analysis about broker activities. Then, I have selected ‘GCI’ trading broker as my trading platform. Because, this award winning brokers have all options for trading. So, now I am very relax with this regulated trading broker. On the other hand, surely I like to trade in oil as well as Gold trading. I am sure, without high capital with good trading killed is the only way to trade in gold and oil.
 
The fall of Oil will be just temporary and not for long time. The problem here that Oil is getting harder to looking for and the price is getting more expensive, i do recommend a trader to go for long term trading with keep BUY that hold that around more than 8 months or even up to 2 years.
 
oil has fast moving. i do not trade in this time. i focus on gold and EJ. this is my favourist pair. i understand this pair. we can get better signal with it. i iwill try with Oil. i hope i can make more profit with this pair
 
I believe for trading in gold and oil traders need huge trading knowledge and experience. Because, it’s much risky trading substances. In addition, for trading in oil need huge fundamental knowledge. Because, this trading metal directly involve in world fundamental news. BY the way, personally I am vey much inverted to trade in oil. Because, I can trade in oil with low trading spreads. One only this trading metal but also I can trade in Gold, indices and CFDs very comfortably. On the other hand, I get quick fundamental news from my ECN trading broker GCI Financial. Therefore, I can make huge money according to their fundamental analysis. So, need to learn how to use news trading.
 
After recent Oil debacle, I don't think lot of traders are looking to trade in oil market, I think traders will wait for the best possible opportunity to come across or any news or headline from the Oil producing companies so that they can identify an opportunity for potential profits in the future.
 
Peak oil is getting closer and i think the price of oil will keep increasing but at the moment it keeps falling but there are some resistance too. I see some traders still trying to take advnatage to make more speculation.
 
I think Political situation right now is leading the Oil debacle and the reason that most of the Oil producing countries are now saying that we don't care about it, that will lead to some more losses in the prices in near future.
 
In long term actually it will increasing because it is all about demand and supply but in near term, the price will keep falling because of this issues, I am sure that this political issues in Middle east could bring bad news for trader who prefer oil as their commodity.
 
I also heard recently that a Saudi prince said that Oil never gonna be at $100 again and it is known in the market that the political scene can damage the shape and price of oil a little bit more, so in near term may be price will decline a bit further.
 
I don't know but at the moment the supply and demand make the price of Oil fall further to lower level even at around $50 now. This gives bad and good effect to a country or people that dependant to Oil. For speculator this means their lose while to consumer it is a good idea to gain some big margin.
 
Yeah I agree with you on this matter, and I think unless until there is a massive move in the political environment in the World, there is very much possibility that the Oil will move around the current price in the Oil Market.
 
The price of oil is the lowest once since some years ago The price of oil right now getting more pressure from the speculator makes it has tendency to fall more, especially with people's concerns about the other Oil producer's policy.
 
In 2008, oil was priced at 33 level. Now Price is at 38 level. I don't trade on oil but I don't think it will go below 33 level.
 
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