Crude oil is ranked as the top liquid commodity in the world which means that there is a high volume and a clear chart when it comes to crude oil trading which is why oil traders should understand how the supply and demand of crude oil dictate the price of it in the world and forex trading market.
Both the fundamental and the technical analysis is very crucial for oil trading which allows the traders to gain an edge over the very competitive nature in the stocks market.
When it comes to crude oil trading strategy, a trader should always follow a greater, consistent, and more efficient way to gain more profits, but why you should be trading crude oil? Well, crude oil is the world economy’s primary energy source which makes it a very popular commodity to a lot of traders as their product to trade, and also a naturally occurring fossil fuel, it can be refined into different various products most commonly gasoline or petrol, diesel, waxes, lubricants, and other products using petrochemicals.
Considering its consistent high demand in the market and traded in volumes and extremely liquid it is safe to say that oil trading should always involve the tight spreads, clearing chart patterns and most of all its high volatility.
Outlined below are some interesting facts about crude oil which is why it is the best product to be traded in the stocks market and forex trading and at the https://www.byfx.com/en/wtiusd/.
- Crude oil is used in nearly all products that you can use every day. Crude oil is considered to be the world’s most important energy source because of its extensive use in everyone’s lives. Oil is not just a basis for fueling and heating, it is also used in different products and manufacturing processes as well. These countries are the United States, Saudi Arabia, Russia, Canada, and Iran.
- There are five countries that are responsible for nearly half the total global oil production that world is using and these countries which are the top five oil-producing countries are also responsible for nearly half the world’s daily production by using around a hundred million barrels of oil a day.
- In 2017, these five countries produced nearly 46 million of the world’s total 92-million-barrel production while the remaining oil-producing countries contribute the other half. The United States produced most of the oil with 13 million barrels per day, keeping in mind the term production refers to crude oil extraction in its oil-rich states. For traders, crude oil from the top producing countries has the potential to create an influence to supply and therefore also the price in the market.
- The price of crude oil can be influenced by external factors like the weather and the political uncertainty and turmoil in countries that produce oil. Severe weather conditions can affect the price of crude oil in the stocks market because the extraction can be affected and results to shortage of production as well while conflicts and political instability in oil-rich countries can also affect the production, the price, and the extraction of crude oil that will surely affect the stocks market and be a top factor of its price and value that is why monitoring it constantly can assist to a better proportion of successful trades.