Even though this is an appealing market, it is needed research before including oil as a trading asset in your portfolio. Crude oil stands at the heart of transport, construction and more industries. There are historical prices and indicators that will show you how oil prices have moved.
We have built a solid trading infrastructure which includes two trading platforms, three trading accounts, trading analysis, news & event, tools, extra indicators, advanced historical prices charts. As our client, you will have full access to financial markets assets for free, and you will be able to diversify your portfolio with the most trending assets of the moment.
Unlike Gold or Silver, Oil is a daily consumable product. This means that once
the product (oil) is consumed, it needs more Oil to replace it. Its usages start
from thin films to military-grade parts. Also, it is a huge source of
combustible fuel for cars, buses, airplanes and more.
The high range of oil usages have grown the demand for this finite
commodity. Energy companies are competing to provide an unstoppable
supply of oil by extracting 95.2 million barrels of oil per day (this is a
reference of 2019).
Even though the companies may try to keep the prices at a fair level, despite the costs, geopolitical events bring some restrictions in the form of taxes and fees. For example, a military conflict in the Middle East, where a large amount of oil is extracted, could cause a cut in the supply and as consequence a price raise.
It stands for the Organization of Petroleum Exporting Countries. It was created in 1960, and the participating countries are listed like this: Algeria, Angola, Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, United Arab Emirates, & Venezuela. OPEC reports oil production per member country and manages the total amount of oil produced, ensuring this way the balance between the supply and demand.
Production & Consumption
Referring to the production levels, Saudi Arabia comes second- producing 12.42 million barrels/day (12%), Russia comes third with 11.4 million barrels (11%), followed by Canada, China and Iraq producing respectively the same amount 5% of global oil.
Referring to the consumption levels, China comes second after the US, as the largest oil consumer with 12.79 million barrels consumed per day, which presents 14% of the total world consumption, and after comes India with 4.44 million barrels/day.
WHY TRADING ENERGY WITH 5Markets?
Take advantage of the economic growth
If the economy goes through a growth, commodities values do the same. An
economic growth creates more jobs, which brings more incomes, the consumption grows, which leads to more sales.
Deal the inflation easier
Based on the historical behaviour, energy commodities are considered safe havens. They have instrict value, meaning that they are not influenced by only the market influencers, but also from their quantity disponible.
There are two ways of making money
Many traders use the buy low-sell high methods to make profits. It attracts day traders and buy-and-hold investors.
LIVE ENERGY DATA
WHAT SORT OF TRADER ARE YOU?
Is it the first time you are facing financial markets? Well, go with one of the accounts, tailored for beginner traders. You can start with $ 250 as a minimum, or any amount up to $ 2,500, so you take advantage of what a beginner account provides you with.
Do you have a couple of years in financial markets
and have some basic knowledge and experience?
We provide a tailored account for this category
starting with a minimum investment of $ 2,500 up
to $ 25,000. Enjoy additional trading privileges
coming along with higher investments.
For any professional trader and investor, we provide privileges for people who trade daily for many years now, advanced accounts are serving trading services and standards which will put your experience in a higher level, and make you expand your expertise and knowledge.
MAIN CONCEPTS IN FOREX TRADING
Commodities are considered a must to a trading portfolio. They return to have a negative correlation with stocks and indices. So, when stocks tend to fall, commodities rise. So, trading in commodities ensures diversification and improves the risk tolerance.
Inflation usually affects stocks and the currency market, because it depreciates the value of the currency. Commodities, however, are not affected by inflation because they retain their value even in difficult times, because traders and investors turn to commodities as safe havens.
Commodities are volatile assets. They tend to have major shifts in extreme circumstances like wars for example. A war would cause a rise in the crude oil demand, so its price would go up. This scenario would be very profitable for traders if they chose to invest in energy commodities.