Since it’s important, I would like to take this chance to review the fundamentals affecting crude oil price with you guys who care about futures crude oil trading:
OPEC Output
On one doesn’t know about OPEC (short form of The Organization of the Petroleum Exporting Countries). According to its name, you can surely know that this is one of the factors affecting the crude oil prices. OPEC production levels and promises for production can also add volatility to the prices. Any activity, even the smallest, all has its impact in crude oil futures markets: A scheduled OPEC meeting and speculation about increases or cuts to oil production….
Weather
Does it sound strange to you? This is oil trading not wheat or grains. How weather influences the oil price? Now, these examples will help make clear wonders. Storms in the Gulf region of the US as well as the North Sea can halt production of crude oil both on drilling platforms as well as refineries. Or recall of the time Hurricane Katrina attached! Obviously, the crude oil market changed? All are clear?
Supply and Demand
You know, both domestic and global demands can have a unique effect on crude oil price. Over the last decade, India and China, two of the emerging markets, have increased demand for crude oil and that led many speculators to suggest that demand would outpace supply. On the domestic side, EIA reports and API reports are often key fundamental influences on crude oil futures markets.
As an expert or learner in futures trading platform, you may have your own knowledge about these fundamentals. So far, how about your comparison? You may think of more? Yes, there are some remaining. Let Futures Crude tell you all!
