Thursday, 4 March 2010

Fundamentals for Crude Oil Futures

When trading futures crude oil, to earn from the market, we need to know fundamentals that affect crude oil prices. I'll let you one minute to think of......1, 2, 3, ..........50, 51.....

Ok, now just compare the results:

Supply and Demand

You know, both domestic and global demands can have a unique effect on crude oil price. Over the last decade, India and China, two of the emerging markets, have increased demand for crude oil and that led many speculators to suggest that demand would outpace supply. On the domestic side, EIA reports and API reports are often key fundamental influences on crude oil futures markets.

OPEC Output

I beg that you know about OPEC. As its name, you can surely know that this is one of the factors affecting the crude oil prices. OPEC production levels and promises for production can also add volatility to the prices. Any activity, even the smallest, all has its impact in crude oil futures markets: A scheduled OPEC meeting and speculation about increases or cuts to oil production....

Weather

This is oil trading not wheat or grains. It seems impossible for the weather influences the price? But it will. Storms in the Gulf region of the US as well as the North Sea can halt production of crude oil both on drilling platforms as well as refineries. And Hurricane Katrina played as the strongest example. All are clear?

How about your comparison? You may think of more? Yes, there are some remain. Let Futures Crude tell you all.

All in all, I want to tell you the last words that it can be worth watching for these events since crude oil futures trading can be incredibly risky even without events such as wars or hurricanes to increase volatility.

How Futures Crude Oil Acts in Life?

Talk about crude oil trading, as traders in the market, you might note that futures crude oil is among the most popular and widely watched futures markets. Everyday people talk about crude oil prices on television shows, in newspapers or magazines. Futures for crude oil trade on more than one exchange and are available nearly twenty-four hours a day. For that's much, you can easy imagine how important it is in our lives. Such the channels are watched widely by speculators, hedgers, and the general public since petroleum products can affect nearly every facet of life. However, we cannot negate the fact that crude oil trading involves a substantial risk of loss and is not suitable for everyone. Nothing is easy to earn, our job is trying to learn to understand more about the market to be wise to solve problems we face. "Do not trade without a good understanding of the markets!"

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