crude oil

CRUDE OIL INVESTING


Trade Crude Oil 

Crude oil is one of the most popular energy commodities and the most actively traded commodity in the world. In one or another way, the price of crude oil affects each of us. Crude oil is essential as it is used to produce many other products such as gasoline, heating oil, diesel, jet fuel, and many other petrochemicals. Any significant fluctuation in the price of oil can have a significant impact on the economy.

 

Crude oil is traded as an oil futures contract in which two parties agree to exchange a fixed amount of oil at a pre-defined price on or before a fixed date. This is the most common way to trade crude oil. The Light Sweet Crude Oil futures contracts are listed on the New York Mercantile Exchange (NYMEX). Crude oil trading has become very popular market for traders in recent years. It allows traders to benefits from the prices movements of the commodity or act as hedge against currency depreciation.

 

Crude oil Contract Specs

Ticker symbol: CL

Exchange name: NYMEX

Trading hours: 9:00am- 2:30pm ET.

Contract size 1,000 U.S barrels (42,000).

Price quote: price per barrel

 

What influences the price of CRUDE OIL?

As Crude oil being a high-demand global commodity, there are many factors that can affect the price of crude oil. The commodity market is very active, and traders react to every news and information, which can cause major fluctuation in the price of crude oil. The two most crucial factors which can affect the price of oil are:

 

  1. Supply and demand
  2. market sentiments

The idea of supply and demand is very simple. The price of oil is directly proportional to the demand and inversely proportional to the supply. In a simple word, when demand  increases and supply decreases, the price of oil will go up, and when demand decreases and supply increases, the price of oil will fall. The supply and demand causes significant fluctuation in the price of oil. Traders around the world speculate on this price movement

 

The other key factor that can influence the price of crude oil is the market sentiments. Any news or belief that indicates that demand of oil will rise dramatically at some point in future can cause a rally in oil prices and vice versa.

 

The single largest influencer of oil prices is OPEC. OPEC stands for Organization of the Petroleum Exporting Countries. The body is made up of 15 countries. The main aim of this body is to coordinate and unify the petroleum policies of its member countries and also to ensure the stabilization of oil market. OPEC decisions and policies can force crude oil prices to rise and fall dramatically.

 

Why trade Crude Oil CFD with CAPITAL STREET

  • BROAD RANGE OF MARKETS- Access to the popular commodities markets, including energy, metal, and agricultural products.
  • CSFX offers you our stat of the art platforms and range of trading tools
  • Trade using Margin- Get greater exposure to the marketplace with a small deposit and spread your capital using margin.
  • Automate your trade facilities and direct access to the market
  • Safety of funds