To talk about oil trading, I bet that this topic will get much concern from you guys since crude oil futures are among the most popular and widely watched futures markets. You know, there isn’t a day without the mention of crude oil prices on the television, in newspapers or magazines. This shows the importance of this market to everyone. How about you? If you have decided that speculating in crude oil is something suitable  for your risk capital. You will want to learn as much as possible about . There are more than a few things that can affect crude oil prices. Now, we will together check out some fundamentals worth noting if you are trading futures crude oil.

Domestic demand and global demand both affect on crude oil price. Over the last decade, emerging markets like China and India have increased demand for crude oil and so this led many speculators to suggest that demand would outpace supply. On the domestic side, the regular reports from the EIA on refining activity and crude oil supply have direct impact on crude oil price and also crude oil futures price volatility. Released weekly, EIA reports and API reports are often key fundamental influences on crude oil futures markets.

OPEC as all of us know that is The Organization of the Petroleum Exporting Countries. From its name, we all can be sure that its activities wil have strong effect on oil market. Opec production levels and promises for production can also add volatility to crude oil prices. Even a scheduled OPEC meeting and speculation about increases or cuts to oil production can impact crude oil futures markets.

That sounds strange that weather can affect oil price, but it will. Storms in the Gulf region of the United States as well as the North Sea can halt production of crude oil both on drilling platforms as well as refineries which may be shut down anticipating the arrival of a bad storm. Events like Hurricane Katrina stand as strong examples of how weather may have a direct impact on crude oil price.

Tensions in oil producing regions or near pipelines or refineries can also cause changes in crude oil prices as investors weigh the possibility of supply interruptions. Pipeline attacks or oil tanker hijackings are some past examples. Political tensions and war in the Middle East also influenced crude oil price in the past.

I think you can predict this fundanmental already. Yes, when pipelines or refineries are shutdown for any reason, this can disrupt supply and cause crude oil prices to fluctuate.

These are situations you will want to be aware of when trading crude oil futures as they can impact crude oil price and increase volatility. It can be worth watching for these events since crude oil futures trading can be incredibly risky even without events such as wars or hurricanes to increase volatility. For help, check out energy commodity prices to not miss the market!

Crude Oil video 5mins
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Question by sweet princess: crude oil………………………?
guys.. what are the benefits of a crude oil?.

Best answer:

Answer by Lauren B
medicinal benefits

Add your own answer in the comments!