Crude oil is one of the best commodities to trade. It is a very active market and it is well known with investors around the world. There is usually no shortage of news to cause the price of oil to move from day to day.
This presents many good trading opportunities, whether you focus on day trading futures or you are a longer-term trader or investor. Crude oil is one of the most actively traded commodities in the world. The price of crude oil affects the price of many other assets including stocks, bonds, currencies and even other commodities.
This is because crude oil remains a major source of energy for the world. Once a week, the Energy Information Administration (EIA) and American Petroleum Institute (API) gives a glimpse into what the future demand for oil is going to be by releasing its Crude Oil Inventory numbers. Traders love this information because the amounts of oil commercial firms have in inventory impacts the price of oil in a relatively predictable way.
This more oil commercial firms have in inventory, the less demand these firms will have for oil in the future and the cheaper the price of oil will become. The less oil commercial firms have in inventory, the more demand these firms will have for oil in the future and the more expensive the price of oil will become.
Of course, there are certainly other factors you should be looking at when determining the future price of oil so don’t read the news in a vacuum. Access to online crude oil trading is done through an online broker, the broker will provide you basic platform and other services such as trading account, example is the way Forex is traded online too. Traders profit from the rising and falling of oil price and profits are paid in cash.
Culled from www.ccitraders.com
