Best Crude Oil Expert in India
One of the most popular commodities to trade is crude oil which counts in the world’s economy primary energy source.
It is a naturally occurring fossil fuel.
Crude oil can be refined into various products like,
- Gasoline (petrol),
- And other Petrochemicals.
Due to the high volume and clear chart, traders follow crude oil trading strategy.
Which also gives,
- Greater consistency
- And Efficiency.
Among the most liquid commodities in the world, crude oil is one of them which ranked.
Best Crude Oil Expert in India
By how the supply and demand affect the price of oil, that should very well understandable by oil traders.
Then only traders can gain an edge over the market.
To trade in crude oil, credit goes to the fundamental and technical analysis.
Which also proved very useful.
To take full advantage of crude oil fluctuations, market participants often fail.
Either because they haven’t learned the unique characteristics of these markets.
Or because they’re unaware of the hidden pitfalls that can eat into earnings.
Crude oil moves on the basis of supply and demand.
Hence, it gets affected by,
- Worldwide output
- And Global economic prosperity.
To lower the ground, traders sell crude oil when it gets oversupply and shrinking demand.
When demand gets higher with the lower production then traders bid the crude oil to higher the ground.
Outages or maintenance in key refineries around the globe.
Whether it’s the Forties pipeline in the North Sea or the Port Arthur refinery in Texas, must be monitored because of the effect it can have on the supply of oil.
The concern for the supply of crude oil also depends on the war in the Middle East.
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Let’s take an example, in 2011, when the Libyan Civil war began,
About 25% of the price of oil has raised.
And it has been observed within a couple of months.
OPEC (Organization of the Petroleum Exporting Countries) production cuts or extensions lead to changes in the price of oil.
To understand this, again take an example, in 2016, the price of oil has risen from $44/bbl to as much as $80/bbl.
It has happened when the cartel had announced its decision to curb global supply by 1.9%.
The higher oil consumption occurs in the hot summer which can lead to increase activity.
To heat houses, people consume oil products more, especially in the cold winter.
The U.S. and the European countries which typically have been develope comes in the category of the largest consumers of oil.
However, in recent times there has been a surge in oil consumption in Asian countries, namely China and Japan.
It is most important for traders to keep their attention to the level of demand in these nations.
Demand may fall when any slowdown could affect oil prices.
Expert oil traders generally follow a strategy.
They will understand the fundamental factors that affect the price of oil and use a trading strategy that suits their trading style.
Each trading strategy is different.
Crude Oil Advisory
A comprehensive crude oil trading strategy could include:
- Fundamental Analysis
- Technical Analysis
- Risk Management
- The U.S Dollar
- The Stock Market.