Oil

Wigmarkets will help you to become a successful oil trader

Oil trading has for many years a significant presence in commodity markets.The question is whether this is the right direction for you? Our task is to help you make an accurate assessment of whether oil trading can contribute to your portfolio or not.

Important Facts About Crude Oil Trading

Although it's commonly called "oil trading", it covers more than some might think. Remember that crude oil is the heart of everything that contains a combustion engine, whether it is gasoline, oil, diesel or even paraffin. All of which have an impact on the oil trading market directly. It may seem a bit confusing but do not worry, it's quite the contrary. There are very good indicators that will guide you in terms of trends and fluctuations in oil trade.

Advantages of crude oil trading

At Wigmarkets, we believe that oil trading has a lot to offer to your portfolio. These include:

  • Oil has a steady demand in today's market.
  • Cars using this fuel are not yet out of use and their energy source cannot yet be universally and effectively replaced by an alternative source.
  • Oil is easy to produce, while alternative sources of energy proposed to replace it have not yet reached this level of ease and speed in use. As we continue to produce Oil products, this market is still stable.
  • The variable sources productivity and the finding of new ones means that prices are constantly changing - you can use this to your advantage.
  • Oil trading is a very liquid market.

Understanding the Oil Market

Although it may seem a bit scary at first, we will try to simplify it to understand how to take advantage of oil trading deals for you. There are some principles to keep in mind: First, get familiar with the two benchmarks. Brent type Crude Oil is classified as sweet light low sulphur crude oil. It is produced mainly in the European North Sea. West Texas Intermediate (WTI) is also a light sweet oil but is produced in the United States.Both prices are usually reported.

Do not underestimate the policy - you need to keep in mind Europe, Russia, the United States and the OPEC countries (the Middle East and South America) and China is getting more involved. You have to take into account global and local production if you are in an oil producing country.Remember drilling for oil is expensive and that's why attempts to use new techniques continue. Generally, production is driven by demand. These are the main factors determining oil prices, and this can greatly contribute to your trading!

Always be well informed to understand how these different factors are affected by each other. Weak domestic demand and high global demand may be observed OPEC may deduct withholding tax for a given supply. It is possible to find new hydraulic fracturing sites. All of this has an impact on the oil market. You need to spend some time to get acquainted with previous market data (as far as they are indicative of future performance), that's all you need to understand the basics and strangeness of the oil market. Oil trading is not necessarily difficult, especially with the Wigmarkets’ platform.

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