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Crude Oil

Crude oil Online Trading

How to trade Crude Oil ?

The oil prices rose earlier this summer, thanks to a set of temporary factors, such as the forest fires in Canada, oil workers strikes in Kuwait, but as soon as these consequences are over, investors focus moved to the issues surrounding the oil markets for two years.

Seasonal factors affecting the price of trading crude oil
Factors, which severely affected the oil prices recently are mounting from oil exploration in the United States activities, and expectations of Libya's return to the oil - exporting markets, and the potential increase in production by members of the Organization of petroleum exporting countries members (OPEC) such as Iraq and Iran.

Historically, the demand for the oil stock was high in times of geopolitical tension in the Middle East, and in times of low production capacity for global oil, and the expected growth of the global economic especially political events that severely affect oil prices, and historical examples of this is OPEC embargo, which was in 1973 in reaction to the October war and the Iranian Islamic revolution in 1979.
The supply of crude oil depends on the geological discoveries, and legal and fiscal framework for the extraction of oil, extraction costs, the availability of financial and technological capacity, which helps in extraction, and of course the political situation in oil-producing countries, the lack of the internal and external political instability in oil - producing countries and conflicts with other countries could lead to destabilization of the oil prices.
Oil prices began to rise significantly from 1999 till mid-2008, and that was evident from the high demand for oil in countries such as China and India at the midst of the financial crisis from 2007 to 2008 and then the sector has seen a significant decline in the price after hitting a peak of $ 147.27, and in February 2009 the oil price hit below the $ 40 a barrel.
Oil price had seen a sharp rebound after the crisis and rose to $ 82 a barrel in 2009 - on January 31, 2011 the price Brent crude hit $ 100 a barrel for the first time since October 2008, as a result of concerns about political unrest in Egypt and the price vary from 2011 to 2014 around 90 - to $ 120 until mid - 2014, and then the sector witnessed a decline in prices because of the significant increase in oil production in the United States, the drop in demand in emerging countries.
With the expanding of the world economy, demand for crude oil increased -in their observations, authors mentioned that oil prices have risen because of increased demand for the stock of crude oil as a result of future warning of the lack of supply in the trading crude oil market.

In 2008, the New York Times reported that the price of oil in the forties was nearly $ 17 a barrel and rose slightly to more than $ 20 during the Korean war (1951-1953), during the Vietnam war (from the fifties to the seventies) the price of oil has fallen gradually to less $ 20, during the Arab oil embargo ( the first oil shock) in 1973.

Oil prices rose quickly into 40$ a barrel, and then rose again in 1979 during the Iranian revolution ( the second oil shock) oil prices peaked in April 1980 to around $ 103.76. During the year in 1980 there were attempts to control the crisis, and the price to circle back again to around 20$ for a barrel ($ 22), and again reached prices to peak - $ 65 per barrel during the year 1990 (Persian Gulf war).

After that there was a period of global recession and decreased the price of oil from the highest level for up to $ 15, before it reached the height of $ 45 on Sept 11, 2001 to come back and repeat the drop to a low of $ 26 on May 8, 2003 and after the price rose to $ 80 with the US-led invasion of Iraq on March 3, before 2008 price of oil reached 103.95 a barrel on the New York Mercantile Exchange.

Brent crude rose from its lowest level in 12 years from $ 27 in January to its highest level in 2016 to nearly US $ 53 in June, supported by the initiative of the members of OPEC and other producers outside it including Russia to freeze the production, hoping for the abundant supply to contribute to the stability of price.

Oil reached levels above $ 50 a barrel in late May and June in 2016 as a result of tightening supplies due to the unrest in energy sectors in Libya, Canada, Nigeria and near economic collapse in Venezuela which is a member of OPEC.
Oil prices fell more than 1%, which eliminates the early gains and push US crude below $ 40 a barrel and increases Continuing fears of a glut of oil and the impact of the weak dollar, which was driven by the market.

Although the price of oil largely determined according to the state of balance between supply and demand, as is the case with all goods, but some commentators from Business Week and economic Times and the Washington Post reckon that the reason behind the rise of oil prices before the financial crisis 2007 - 2008 was speculation in the futures markets.

Online Trading Brokers

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In the table below you can see the full list of brokers who offer this asset for trading