Basics of Trading of Liquid Gold – Crude Oil 

Crude oil is one of, the best commodities used for trading. It has been quite dynamic in the market. The investors from across the globe are familiar with it. There is typically no lack of news to make the cost of oil move from the everyday.

It shows a lot of awesome trading opportunities, regardless of whether you concentrate on day trading futures or you are a more drawn out financial specialist or trader.

Crude oil is a standout amongst the most effectively traded items in our globe. Crude oil prices do have a great impact on the prices of countless other assets.

These assets incorporate the bonds, stocks, currencies and many others. The reason behind its influence is that it is a key source of energy for the entire world.

Like Forex trading, crude oil trading also requires a lot of research and evaluation. There are many crude oil signals provider like the Forex signals providers.

A lot of them will offer the crude oil signals through SMS, Email or website account. The reliable signals are efficient for the traders as they can provide them good crude oil forecast.

Crude Oil Basics

• Crude oil is typically a raw material which is first refined to make heating oil, diesel, gasoline, plane fuel and different other petrochemicals.
• Crude oil that has light sweet taste is traded on the New York Mercantile Exchange. This light sweet crude oil is considered as the famous type of crude oil that is exchanged.
• Brent Crude oil is the next famous and valued oil that is mostly traded in the United Kingdom.
• There are total three biggest oil producers in across the globe. These producers are Russia, United States, and Saudi Arabia.
• When the crude oil has to be refined and processed, then it takes around three barrels of oil to make one barrel of heating oil and two barrels of unleaded gas.

Trading Crude Oil

Trading crude oil on the platform of Forex might be different from the rest of the commodities. There are a few platforms that simply trade in oil then you have to trade the contract like the currency pair. Crude oil can be traded against the dollar. On Forex platform, the traders can also trade in the pair of OIL/USD. Crude oil can sometimes be mentioned as CLD/USD.

Guidelines on Trading Crude Oil Futures

• The costs of the heating oil, as well as unleaded gas, could have an impact on the cost of crude oil.
• Its demand reaches the top amid winter and summer months only. A hot summer can trigger the demand for crude oil which could also maximize its price. Similarly, very cold winters can trigger higher interest for the warming oil that is produced from crude oil. More often than not it can raise the prices of crude oil. Have a look at the climate in the Northeast, since it is the part of the country that makes use of heating oil a lot.
• Watching the oil production increments and cuts from OPEC is imperative.