Posts Tagged: ‘crude’

Crude Oil Trading

May 19, 2012 Posted by admin

Trading crude oil can be very difficult and there are many factors that affect its price.

Oil is currently drifting higher day by day. Although there has been a recent pull back in line with equity markets from the highs, we are still far higher now than we were 12 months ago.

For all of the talk about variation from dependence on oil, the fact remains that a huge percentage of our energy usage still relies on crude oil. While there are other alternatives to petrol and diesel we are stuck with the historical infrastructure built around these, as anyone who has searched for an LPG or bio-fuel garage will testify.

The daily markets are providing some interesting opportunities for those who are able to buy and sell crude oil. For the Nymex US Oil futures contract, a recent attempted rally ran into quicksand far faster than the bulls might have expected.

The moves higher are still very aggressive but we are now running into general-drifting-lower periods when not much is going on. This is in stark contrast to earlier trading sessions which saw continued upside pressure throughout.

Whisper it quietly but there is a certain amount of trepidation. If we cannot get back onto the front foot soon, the current over-supply of oil, which the markets have ignored for some time, might outweigh the recent concerns about ‘future demand outpacing production’.

Towards the end of 2009 oil had something of a gravitational pull to the $80 per barrel level. Having said that there was, and still is, a degree of volatility around the weekly Oil inventories (due out on Wednesdays 15.30 at local London time and 09.30 local New York time).

Many traders seem to be flattening positions out before the weekly inventories and they are only taking a view in the aftermath.

If I am trading the oil markets, be it US Oil (WTI) and/or UK Oil (Brent) then I prefer to trade my short term positions through a spread betting account.

There are a number of Financial Services Authority regulated companies that offer thousands of international markets including crude oil, currencies, stocks and shares. Spread betting firms, like FinancialSpreads.com and IG Index offer the normal benefits of spread betting including; tax free trading*, trading outside market hours, no brokers fees and no commissions.

Be aware though, spread bets do carry a high level of risk to your capital and you can lose more than your initial stake. You should only speculate with funds you can afford to lose. Before trading, ensure that spread betting matches your investment objectives and familiarise yourself with the risks involved. If necessary, seek independent advice.

* According to current UK and Irish tax law, this may change or differ depending on your personal circumstances.

Based in the heart of London’s financial district, Daniel Jones is a seasoned spread betting professional and commentator on some of the leading UK spread betting sites

Article Source:http://www.articlesbase.com/investing-articles/crude-oil-trading-1597864.html

Read full article |1 Comment
Tags: crude, oil, trading
Categories: Uncategorized

Trading the US and UK Crude Oil Markets

May 16, 2012 Posted by admin

The increasing strength in world economic data does not seem to be translating, just yet, into more demand for crude. While ‘peak oil’ is a phrase on everyone’s lips it must be said that production from many parts of the globe is currently artificially constrained.

Producers seem willing to turn on the taps above $75, as a sort of profitable-commitment to world growth. While everyone blamed the financial institutions for the collapse in the global economy the impact of $147 per barrel of oil was not exactly a helpful factor.

Looking at the day-to-day trend more closely, oil looks to have found a ceiling as it struggles to get beyond the $80 level.

Whenever there is any strength in the US Dollar that has naturally led to weakness in oil prices as investors close positions, very much a flight from risk.

Strength in the equity markets and weakness in the Dollar normally translates into rising Oil prices. Although we are still seeing some good market rallies, it seems that dealers are less confident than in times past.

The failure to break permanently above $80 may be worrying the Crude Oil bulls a bit as all the normal impetus required seemed to be in place. If the Dollar starts to strengthen, unlikely as it might seem, we may find that dealers are pressuring the support levels again rather than the resistances.

Since the highs at $82 in the US WTI Oil contracts in October 2009 we have had a series of attempted rallies, all of them failing at lower and lower levels. Looking at the oil charts, we now have a very nice falling-trend-line-top to aim for.

Should we close above the trend line there may well be a reaction move to new highs. But, and there is always a ‘but’, the longer we remain below the trend easier it will be for the bears to drive prices lower.

So what should an investor look to do? I prefer to trade the oil markets through spread betting. Note though, there are downsides to all forms of investing and with spread trading you need to be careful because you can lose more than your initial investment.

On the plus side though, there is no capital gains tax, no stamp duty and no income tax on spread betting*.

Also, an interesting benefit is the number of markets that you can trade. Spread betting firms often offer thousands of markets from European and US shares to gold and Dollar/Sterling currency rates. Naturally you can trade both US and UK crude oil spreads.

With the volatile markets like oil, being able to short a market provides interesting opportunities. You do not have to speculate on markets to go up. If your research leads to you think the price of crude oil will go up, you can, of course, bet on it to go up. However, if you think that oil will go down you can bet on it to go down.

It is important to note though that spread bets carry a high level of risk to your capital so you should only speculate with money you can afford to lose. Like the adverts say, before trading, please ensure that spread betting matches your investment objectives. Make sure you familiarise yourself with the risks involved. If necessary seek independent advice.

* Based on current UK tax law, if you pay tax in another jurisdiction then tax law may vary.

Robert Thomas is a financial journalist and a commodities spread betting writer offering strategic views on a range of financial markets.

Article Source:http://www.articlesbase.com/investing-articles/trading-the-us-and-uk-crude-oil-markets-1584632.html

Read full article |7 Comments
Tags: crude, markets, oil, trading, uk
Categories: Uncategorized

Is The Price Of Light Sweet Crude On The Rise?

November 22, 2011 Posted by admin

If you have been keeping tabs on how light sweet crude oil has been performing in recent months, you will know that prices have been heading upwards for quite some time. And Friday 6th November saw that price finish up at $77.43 by the time the weekend was upon us. This was a little over two dollars lower than it had started the session at.

A little research shows that prices are a lot higher than they were at the beginning of this year. Back in February we were looking at much lower costs per barrel, with figures settling in at around the $45 mark. We haven’t quite doubled up the value since then, but it isn’t far off and many are wondering whether we could get back to that higher level once again. There is currently some uncertainty though as to whether this could happen, so it will be interesting to keep an eye on the figures as the next week or two progresses.

If you check out a graph of the progress that light sweet crude has made over the past year, it makes for interesting reading. At present the oil is valued slightly higher than it was this time last year. As we mentioned above it then dipped back down by some distance before gradually starting to make its way back up again throughout the rest of the year.

So as the price has been rising, the question is how much longer will it continue to do so? If we look back to July of 2008 we can find a top figure of $147 per barrel. We are still some way off that at the moment – indeed we would have to nearly double the value if we wanted to achieve that high again. But how much closer will we get to it?

Many people are pointing to the testing point of $80 a barrel. And since we are very close to that now, there is a chance that we could indeed reach it again very soon.

It is important to note however that in recent days there has been a slight dip in the prices. So does this point to the possibility that the highest point has already been reached? Or is it just a momentary dip that will be followed by another rise in price?

Whatever the case may be, light sweet crude oil is certainly one to watch in the coming days and weeks.

Next, check out our free stock picks that have made huge gains. Your #1 spot for top ten penny stock picks.

Article Source:http://www.articlesbase.com/investing-articles/is-the-price-of-light-sweet-crude-on-the-rise-1440447.html

Read full article |2 Comments
Tags: crude, light, price, rise, sweet
Categories: Uncategorized

Mid-Week Commodity ETF Update!

November 5, 2011 Posted by admin

Commodities and stocks have been on fire the past two weeks and I think it just may be time for things to take a breather. While I continue to stay long, taking some money off the table to lock in profits is a safe play. 

 

If you look  at the charts we can tell the odds are pointing to some type of pause or pullback in the coming days. I figure any day now we could see some profit taking.

 

Gold ETF Trading – GLD

The Gold ETF is one of my favorite trading vehicles. Using simple trend lines and looking at the recent price action you can see that the price of gold is looking ready for a pullback. Buying at this level is chasing and that generally means you buy at the high and panic out at the low.

 

Silver ETF Trading – SLV

The Silver ETF looks to be in the same boat as gold. I expect to see some sideways price action or a pullback.

 

Natural Gas ETF Trading – UNG

The Natural Gas ETF sure has given everyone a wild ride in the past 6 months. The bear market is still in place which can be seen on the daily chart. So far this week the price has broken down and trading at the $11 support level. This fund could generate a buy or sell signal with my trading model in the coming days so I am waiting for a clear entry and exit point before jumping on the gas wagon.

 

Crude Oil ETF Trading – USO

The Crude Oil ETF has broken above its resistance trend line this week but still struggling to move above the August high. Volume is declining while the price rises which is a bearish indicator. USO looks ready for some type of a pullback as it digests this breakout before moving higher.

 

Mid-Week GLD, SLV, UNG, USO ETF Trading Report

What does the general public hear and think about the stock market?

From recent emails, local financial news shows, family, friends etc… all I am hearing is how strong the market is. Indexes are making new yearly highs and company earnings are better than expected this quarter. Sounds like all we need to do is buy and life will be great!

 

Well in my opinion the market is the perfect tool for misguiding and frustrating the general public. All my indicators are telling me we need more of a correction before rallying much higher. The market (smart money) generally anticipates good and bad news several weeks if not a month in advance. So the question is:

 

Are company earnings already priced into the market?

 

Is all this positive market coverage getting the general public to buy up here at this possible market top?

 

The answer is, only time will tell. No one knows for sure what the market is going to do but short term moves can be predicted with relatively high accuracy.

 

Don’t get me wrong, I am still bullish on the market but with all this good news becoming public information you have to wonder what is next. I am still long the market but trimming my positions to lock in profits and still stay in the game.

 

Chris Vermeulen
Contributing Writer

Article Source:http://www.articlesbase.com/investing-articles/midweek-commodity-etf-update-1343760.html

Read full article |8 Comments
Tags: About, Action, bad, Been, Boat, buy, buying, charts, coming, commodity, company, crude, daily, day, days, Don’t, entry, etf, exit, favorite, financial, fire, fund, gas, general, Getting, going, gold, good, high, highs, information, life, Line, Lock, Look, Looking, making, market, model, money, move, moving, natural, Need, news, oil, pause, perfect, Place, point, price, profit, profits, Public, Question, ready, report, safe, Same, sell, Short, signal, silver, simple, stock, stocks, Strong, Table, Take, Tell, Telling, Things, think, Time, Tool, trading, Trend, Using, volume, Week, Well, wild
Categories: Uncategorized