ECNpremium will help you to become a successful oil trader

For a long time, when commodity trading is mentioned, oil is the first thing that comes to mind. Before you decide to invest in oil, we would like to provide you with some information to guide you in the oil trading basics.

A few interesting facts about Oil trading

The name may be ‘Oil Trading’, but it gathers in one place much, much more. Yes, crude oil is the heart of anything engine. That is why this market is highly influenced by the demand of all oil products – petrol, oil, diesel, paraffin, etc. you might feel like you’re standing in front of a giant beast, but that should not make you quit. With the right indicators you can easily get oriented in the trends on the vast oil trading market.

The advantages of Crude Oil Trades

ECNpremium considers oil trading as a great addition to diversify your portfolio. Here are its key advantages:

There’s constant demand for oil.

There’s also the undying interest towards cars, and they need to be fuelled somehow. Currently, oil remains the main fuel supply.

Oil is still much easier to manufacture in comparison with the emerging fuel alternatives. Oil market is strong exactly because there is steady production of oil products.

Fluctuations in the source production and discovering new ones is a guarantee for the dynamic on the market which allows you to take advantage and make profit.

Oil trading is characterized by great liquidity.
Understanding the Oil Market

Oil market may seem confusing in the beginning, but you can easily advance and learn how to leverage oil trades for your profit. You just need to keep in mind some basic principles. In the first place, you need to know what you’re trading with. There are two benchmarks: Brent Crude – sweet light oil from the European North Sea, and WTI – it has the same characteristics, but its origin is from the US. Usually, both of these are reported in terms of prices.

Secondly – pay attention to politics. The regions you need to keep an eye on are Europe, Russia, the US, and the OPEC countries (the Middle East and South America) and China is a rising player. And if you are in country that produces oil, you need to take into account both domestic and global production. Third – keep yourself informed about all innovations related to drilling – that is an expensive process and producers constantly look for new solutions. Finally, production is mainly driven by demand. Now you know the key factors in determining the oil price and have a solid base for your oil trading strategy!

To build it, you need to follow up on the interrelations between these factors. For example there could be increase in the global and decrease in the domestic demand. Some producer may be keeping supplies. New drilling sites could open or old to be closed. All of this has its role in determining the oil price. And one last thing – make sure you look at past prices and market trends. Now you’re ready. And ECNpremium’s platform will make oil trading even easier for you.

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