You will become a successful oil trader with the help of MT4Quotes
Oil trading has always been one of the pillars of the commodities market for many years. Yet you must choose if it is the right focus for you. We are able to assist you in determining if oil trades will be beneficial to your portfolio or not.
Some interesting facts about Oil trading
Although it’s called ‘Oil Trading’ colloquially, oil trading covers far more than you may expect. Crude oil is at the core of anything that has a combustion engine, like petrol, oil, diesel, even paraffin demand. All these have an impact on this market. It may seem intimidating at first, but it’s quite the opposite. There are very good indicators that can showl you how oil trends usually fluctuate.
The advantages of Crude Oil Trades
We at MT4Quotes are certain that oil trading can offer your portfolio many advantages. Among those are:
- Oil is in a constant demand in today’s market.
- Cars will always remain popular, and we haven’t yet found alternatives to replace their heavy energy demands.
- Oil is easy to produce and refine, while alternative energy sources haven’t reached that level yet. We continue to produce oil products, so this market is still going strong.
- Constant changes in source production and finding new sources means that prices are in continual flux. This is something that can be leveraged to your advantage.
- Oil trading is a very liquid market.
Understanding the Oil Market
It may seem a bit overwhelming at first, but in fact it is very easy to understand how to leverage oil trades to your advantage. There are a number of key principles that many trades adhere to. In the first place, you must know your two benchmarks. Brent Crude is a sweet, low Sulphur and light oil that mostly comes from the European North Sea. WTI is also sweet and light, but it’s produced in the US. Both prices are typically reported.
Don’t forget about politics. As a rule, you need to consider Europe, Russia, the US, and the OPEC countries (the Middle East and South America). China is also a rising player. Analyse global and domestic production if you’re in an oil producing country. It is good to remember, that drilling for oil is expensive and new techniques are constantly being developed. In the end, though, demand is what drives the production. These are the main forces playing around oil prices and here you can find your way around with your trading!
Always try to be informed so you know how these different factors are influencing one another. You could have high global demand and low domestic. OPEC could be withholding supplies. Fracking sites could be opening. All of these are factors that will affect the oil market. In addition, some time spent with past market figures (while never indicative of future performance) will be all you need to grasp the basics of the oil market and its peculiarities. Oil trading is not that hard, especially if have MT4Quotes’s platform.