Crude oil trading offers excellent opportunities to profit in nearly all market conditions due to its unique standing within the world’s economic and political systems. Also, energy sector volatility has risen sharply in recent years, ensuring strong trends that can produce consistent returns for short-term swing trades and long-term timing strategies. Market participants often fail to take full advantage of crude oil fluctuations, either because they haven’t learned the unique characteristics of these markets or because they’re unaware of the hidden pitfalls that can eat into earnings.
There are some steps to get easy profit in crudeoil
Learn What Moves Crude Oil
Crude oil moves through perceptions of supply and demand affected by worldwide output, as well as global economic prosperity. Oversupply and shrinking demand encourage traders to sell crude oil markets to lower ground while rising demand and declining or flat production encourage traders to bid crude oil to higher ground.
Understand the Crowd
Professional traders and hedgers dominate the energy future markets,with industry players taking positions to offset physical exposure while hedge funds speculate on long- and short-term direction.
Choose Between Brent and WTI Crude Oil
Crude oil trades through two primary markets, West Texas Intermediate Crude and Brent Crude. WTI originates in the U.S. Permian Basin and other local sources while Brent comes from more than a dozen fields in the North Atlantic. These varieties contain different sulfur content and API gravity, with lower WTI levels commonly called light
Pick Your Venue
The NYMEX WTI Light Sweet Crude Oil futures contract (CL) trades in excess of 10 million contracts per month, offering superb liquidity However, it has a relatively high risk due to the 1,000 barrel contract unit and .01 per barrel minimum price fluctuation. There are dozens of other energy-based products offered through NYMEX, with the vast majority attracting professional speculators but few private traders or investors.