How to Become Better With Crude Oil Trading Strategies in 10 Minutes

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How to Become Better With Crude Oil Trading
Strategies in 10 Minutes Gill Broking
Created on 30th July 2019
https//www.gillbroking.com
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• Being one of the most liquid investment
  commodities in the market, crude oil is a
  tradeable commodity with clear charts. Just like
  any other investment commodity, traders need to
  know and understand the factors that have an
  influence on the price of crude oil i.e. market
  supply and demand. In addition to the supply and
  demand factors, it is crucial for oil traders to
  conduct a fundamental as well as technical
  analysis to stay updated with the current oil
  market trends and make a better investment
  decision. What else? Traders should also invest
  their time and efforts in crafting and following
  the right crude oil trading strategies. If you
  are looking for the strategies and tips for oil
  trading, you have come to the right place! This
  post is all about crude oil investment tactics
  and the tips on how an individual can get an edge
  over the market. Lets get started.
• The Benefits of Trading Crude Oil
• Crude oil is the primary source of energy. It can
  be used to create an array of products including
  but not limited to petrol, lubricants, wax,
  diesel, and so on. The liquidity and high crude
  oil demand are the main reasons why this
  commodity is traded in a high volume. Brent
  contributes to the worlds two-thirds of the
  total oil traded every year following WTI.
• The Factors that Influence Price Movements of
  Crude Oil
• It isnt rocket science to know that supply and
  demand are the two major factors that have a
  great impact on oil trading. No matter what
  investment commodity is traded, its price can be
  determined by looking into its supply and demand
  in the current marketplace. Now the question is
  How supply and demands are calculated? Well,
  these factors keep on changing with time,
  weather, and other conditions. Lets discuss the
  factor that affects supply and demand for crude
  oil
• Supply and Demand Factors
• Seasonality The best part about crude oil is
  its demand is high in both winters and summer
  season. While the increased activities in summer
  can

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• ramp up the demand for crude oil, the cold
  winters encourage people to use oil in order to
  heat their home.
• Oil Consumers Usually, the largest consumers
  of crude oil are the developed territories such
  as European states and the United States. But in
  the current times, a major portion of the demand
  for oil generates from the developing nations
  (Asian countries) such as China and Japan. The
  economic performance of these countries
  extensively affects crude oil demand. Therefore,
  it is important for traders to be vigilant about
  crude oil demand in the European and Asian
  territories.
• Oil Suppliers Just like the demand, it is
  important to know the current production and
  supply of oil. The production limitations and
  extensions alter the crude oil prices in the
  global market. For instance, the announcement
  for crude oil supply curb by the Cartel in 2016
  led to a sudden increase in the oil prices from
  44/bbl to 80/bbl.
• The professional oil crude traders follow a
  fundamental oil trading strategy after taking
  into account the supply and demand for the
  commodity in global markets. It is worth to note
  that the trading strategy of investors may vary
  to a great extent. But risk management is one of
  the most crucial factors that every trader
  should consider before finalizing a decision. The
  accurate crude oil strategy is based on three
  factors i.e.
• Fundamental Analysis
• Technical Analysis
• And, risk management
• As soon as you comprehend the fundamental factors
  of supply and demand for crude oil, the next
  step is to study the technical analysis.
  Technical analysis helps you get the signals for
  entering into the crude oil trading market. Once
  the buy and sell indications are identified, it
  is time for traders to follow risk management
  strategies. Lets demonstrate this with an
  example
• In 2017, Russia and OPEC announced crude oil
  production cut, which led to a decrease in the
  supply of oil across the global oil markets. This
  is what we call the

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fundamental strategy that the traders must add to
their oil strategy to determine the buy and sell
signal. The next step is to look into the chart
with the help of technical analysis.
Fortunately, there are a plethora of technical
indicators as well as price patterns that can be
used to ascertain the right signals for entering
the trading market. One of the famous indicators
is the Relative Strength Index (RSI). Coming to
the last step, the traders must manage the risk
by avoiding trading mistakes. It can be done by
setting take profits and stop losses. These were
some important strategies the traders must take
into consideration before entering the oil
trading market. So why wait? Use fundamental and
technical indicators and ensure a successful
crude oil investment decision.
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