Best Crude Oil Trading Tips Provider
Crude oil is the primary energy source of the world economy, which makes it a very popular item among traders.
Its a naturally produced fossil fuel which can be refined in various products such as petrol, diesel, lubricants, wax and other petrochemicals.
Its demand is very high, traded in high volume, and it is highly liquid. Therefore, the crude oil trade always has clear chart patterns and high volatility.
If you want to gain profit in crude oil trading in the long run, then it is necessary to take crude oil trading tips from an expert analyst or from the advisory.
First Adviser is the Best Crude Oil Trading Tips Provider and we are also one of the Best SEBI Registered Stock Advisory Company In India.
Basics Of Crude Oil Trading
The Two major points while trading in oil is supply and demand. These two factors always affect the price of crude oil.
The Supply Factors which affects the Crude oil trading are as follows-:
Outages or maintenance
Outages or maintenance in major refineries around the world, whether it is the Forties pipeline in the North Sea or the Port Arthur refinery in Texas, it should be monitors due to the impact on the oil supply. In the Middle East, the war leads to concerns about supply.
For example, when the Libyan Civil War began in 2011, prices saw a 25% increase over the interval of a few months.
OPEC (Organization of the Petroleum Exporting Countries)
When OPEC reduce production, it leads to a change in the oil price. For example, in 2016 when Cartel had announced its decision to stop global supply at 1.9%, the oil price had risen from $ 44 / bbl to $ 80 / bbl.
The demand factors which affect the Crude oil Trading are as follows:-
In the summer season, the activity can increase and high oil consumption can occur. Due to freezing cold, people consume more oil products to heat their homes.
Largest oil consumers have generally developed nations such as America and European countries.
However, in recent times, the consumption of oil has increased in Asian countries such as China and Japan.
For example, it is important for traders to pay attention to demand levels of these countries as well as their economic performance. Any recession can affect oil prices and demand may decrease.
Tips And Strategies For Trading
The Oil traders who are expert usually follow a strategy. The expert oil traders will understand the basic factors that affect the price of oil.
And the expert traders will use a trading strategy which is in line with their trading style.
Every trading scheme is different, risk management is an important part of continuous trading.
Crude oil trading strategies can include:
- Fundamental Analysis
- Technical Analysis
- Risk Management
When a trader knows the basic factors of supply and demand that affect the oil price, then he can search the entries in the market using technical analysis.
By using technical analysis when a trader identifies the buy or sells signal, then the trader can implement the proper risk management techniques.
The next step is to analyze the chart using technical analysis. There are many technical indicators and price patterns that a trader can use to see signals to enter the market.
To manage the risk, the trader can set up a stop-loss at the recent low level.
Advanced Tips For Oil Trading
Advanced traders could use our advanced tips when doing a trade.
Traders sometimes see futures curve to estimate future demand, using the options to take advantage of the CFTC speculative position and predictive high volatility move, or to understand the current market speed, to correct the current situation.
The size of the futures curve is important for commodity guards and speculators. In this way, when investors analyze the curve, then they are looking for two things, whether there is a crisis in the market or backwardness.