Crude oil or
petroleum as it also known as is the most traded of all the commodities, and
its price is quoted in barrels. There are two kinds of contracts that are
traded; oil futures and options.
Crude Oil Trading with London Commodity Markets
Crude oil
trading transactions take place on the price changes quoted for a barrel of oil,
and which way the price goes determines whether you make money or lose. At no
time will the trader actually physically purchase any oil.
Crude oil
prices can be easily influenced by many factors, political and regional instability
being well known factors. Though maintaining the balance between demand and
supply are also major influencing factors. As the economies of India and China
modernise combined with their large populations demand looks set to soar. Crude oil
prices also affect currency trading and sometimes a weakened US dollar may
cause a rise in the price of crude oil.
The
technological advances in alternative or greener energies will also affect the
price of oil. To cut a long story short oil trading can involve some significant
price variations making it an exciting and potentially profitable commodity to
trade in.
Crude oil
commodity trading is no longer the exclusive domain of wealthy traders, thanks
to the advance of online brokerage platforms.
Trade in Crude Oil with London Commodity Markets
London Commodity Markets have access to one of the world’s
largest oil trading markets which although extremely lucrative, can be
extremely complicated and fast-paced.
Industry insiders predict oil prices will experience sharp rises in forthcoming years, making oil a lucrative investment opportunity.
For competitive pricing, tight spreads and high liquidity, speak to us at London Commodity Markets about trading in crude oil.
Crude Oil is a naturally occurring liquid normally extracted through drilling and pumping from underground wells. Crude oil is used for a wide range of products including: petrol, diesel, heating oil, plastic manufacturing and in the medical industry.
The Worlds top Crude Oil Companies
In 2010, the world's top three national oil companies by share of world production were: Saudi Aramco, National Iranian Oil Company, and PdVSA. Meanwhile, the three top international oil companies by share of world production were: Exxon Mobil, BP, and Royal Dutch Shell.
For more information on trading in crude oil contact the experts at London Commodity Markets
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