GUIDE TO INVESTING IN THE OIL MARKET WITH ONLINE SPREAD BETTING

In the past century many people have made their fortunes and made great fortunes as the late billionaire J. Paul Getty of oil did.The growing demand for oil supplies to power today’s energy-hungry consumers continues to grow globally for oil as the energy source of choice for cars, heaters, engines, etc. Countries experiencing significant growth cycles such as Russia, Brazil, India and China are continuing to increase their consumption to fuel their growth ambitions, placing more demand on limited oil resources.

While significant oil resources remain untapped in areas such as Canada/Alaska, oil extraction in these areas is only economically viable with the much higher oil prices seen in recent years.

The 2008 impact on retail consumers was well covered by the world media and felt heavy by all of us globally as oil prices jumped from $85.42 on January 22, 2008 to $147.27 on July 11, 2008, at that time many industry experts rated oil will continue the established trend and trade at $200 per barrel. The credit crunch and the resulting cycle of wealth destruction globally during the second half of 2008 impacted demand for black gold with the price per barrel falling to $32.40 on December 19, 2008. This has been a roller coaster ride for crude in 2008. opportunity for them. who knows – speculative investors – to make significant profits from trades, or of course have made significant losses.

While media interest has waned in recent months to focus market attention on the demise of the banking sector, Oil has made a spectacular recovery from December lows of $32 to hit $70 in recent weeks, industry experts are now calling for $85 dollars a barrel. while others suggest a short-term correction is possible. Whatever the future holds, oil traders and speculators have a chance to profit from the move if their opinion of the direction proves to be correct.

For retail investors gaining exposure to NYMEX Crude or BRENT Crude may not seem straight forward at first, while the opportunity to trade Oil Company shares or buy Exchange Traded Funds (ETFs) (which can provide exposure to oil prices) has traditionally been one-of-a-kind. The only clear route through your online stockbroker, Financial Spread Betting and Contracts for Difference (CFD) trading makes access to these commodity markets relatively easy. Investors can then take long or short positions via spread betting or CFDs and trade price fluctuations in these and many other markets. Financial Spread Betting bonus138 companies and CFD providers also provide a wide range of market information, charting resources and trading technologies that give retail investors access to a wide range of information.

Once a week, the Energy Information Administration (EIA) gives us a glimpse of what future oil demand will look like by releasing its Crude Oil Inventory figures. Traders seek this information because the number of commercial oil companies in inventory impacts oil prices in a relatively predictable way when taken into account with other factors in determining future oil prices.

Total Crude Oil Inventory reports the number of barrels of crude oil that commercial companies have in stock. Commercial companies report their inventory levels to the EIA on a weekly basis, but the EIA still has to make some estimates to arrive at final figures. You can view the latest Crude Oil Inventory report

Another organization that has a significant impact on oil prices is OPEC – the Organization of the Petroleum Exporting Countries. OPEC is a cartel of twelve countries consisting of Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates and Venezuela. The cartel is headquartered in Vienna and hosts regular meetings of the oil ministers of its Member States.

According to the statutes, one of the main objectives is to determine the best way to protect the interests of the cartel, both individually and collectively. It also pursues ways and means to ensure price stabilization in the international oil market, with the aim of eliminating harmful and unnecessary fluctuations; always pay attention to the interests of producing countries and the need to secure steady income for producing countries; efficient and heavy supply of petroleum ur to consumer countries, and a fair return on investment for those who invest in the petroleum industry.

OPEC issues the Monthly Oil Market Report and various other bulletins which once again have an impact on market prices and are eagerly awaited by oil traders globally. While the oil trade may appear to belong to an elite group of traders in London, Chicago or elsewhere in the world, the price of gasoline or gasoline directly impacts everyone in the developed world. This has an impact on the cost of transporting goods and services to every region of the world and as we saw in 2008, it can have a negative impact both on the price we pay for personal transport at the pump, but also on the cost of the food and basic services we rely on in our lives. us everyday. Although we have seen a slight drop in pump prices over the last 6 months, these same experts predict a return to higher pump prices in the future that could impact us all.

Therefore, some have turned to spread betting and CFDs to hedge their exposure to rising fuel costs by placing medium to long term trades that pay off if oil prices rise worldwide. This approach is also relevant for small and medium-sized enterprises that are affected by movements in oil prices – from transporters, farmers and fishermen to almost any business that is affected by rising fuel costs. Big businesses have been doing this for years, airlines shielding fuel costs to ensure unexpected sharp increases in crude do not affect their budget plans in any fiscal year. In 2008 many carriers went out of business due to rising fuel costs but also because fuel taxes in the UK remain high – around 61% of fees paid at pumps are tax revenue for the UK government (see OPEC report published in 2007

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