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Oil2019-01-23T08:45:11+00:00

OIL

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.

MT4Quotes International Limited (www.MT4Quotes.com) is duly regulated and registered with the Financial Service Provider Registry in St Vincent and the Grenadines (SVGFSP Comp. License Number ID : 23598 IBC 2016). The Company are all subject matters not forbidden by International Business Companies (Amendment and Consolidation) Act, Chapter 149 of the Revised Laws of Saint Vincent and Grenadines, 2009, in particular but not exclusively all commercial, financial, lending, borrowing, trading, service activities and the participation in other enterprises as well as to provide brokerage, training and managed account services in currencies, commodities, indexes, CFDs and leveraged financial instruments.
Trading in forex is speculative in nature and not appropriate for all investors. Investors should only use risk capital when trading futures, options and forex because there is always the risk of substantial loss up to your invested capital and may not be suitable for everyone. Please ensure that you fully understand the risks involved and do not invest money you cannot afford to lose
MT4Quotes does not open or maintain accounts for Nigeria, Iran, USA, Cuba, Sudan, Syria & North Korea based entities or residents or U.S. based entities or residents whom are classified as retail or low net worth. Banking restrictions along with our own internal company policies prohibit MT4Quotes from opening accounts originating from restricted and/or OFAC sanctioned countries.
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