View Full Version : Oil Trading

fx trader
09-19-2012, 07:43 AM
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.


Oil Trading (http://fxadd.com/oil-trading/)

09-27-2012, 12:21 PM
yes you are absolutely right and i agree with you. oil trading is very profitable but for that traders need to be very careful for earning such profits, by keeping their focus on the news related to oil because its price also fluctuates very fast.

10-18-2012, 05:35 PM
really helpful article for those traders who want to trade with oil. i have never traded with oil and relative goods but i want to start with. these information motivated me to try oil trading. we should try different pairs and goods trading in Forex to be profitable and don't relay on 1 pair and thing.