Crude Oil is a petroleum product that is used primarily as a fuel. It’s also a lubricant and the base material for plastics, toiletries and synthetic clothing. Crude Oil is a popular asset to invest in because as a commodity, it’s in constant demand across a wide range of industrial sectors.
The price of such a vital raw material may be affected by a huge range of political and economic factors, making Crude Oil once of the most dynamic assets to trade. With massive fluctuations in its price, Crude Oil offers major opportunities for well-informed investors to take advantage of. Online platforms like UFX, which offer favourable trading conditions for Crude Oil, are highly sought-after by traders wanting to take advantage of tight spreads and rapid executions.
While many traders like to use technical analysis, using charts to make fast cal
ls on changing Oil prices, others prefer to take the long view. Often known as “position traders,” these investors hold onto their trading positions for weeks or months in order to profit from long-term market trends.
Before you start trading Crude Oil, it’s important to get up-to-speed on the factors driving Oil prices, as well as the various trends in its value. In recent weeks, for example, the price of Crude Oil has been relatively stable, but taking a step back, it’s clear that the per-barrel value of this commodity has fallen significantly.
Past
A barrel of Crude Oil used to cost more than $100, but the price is currently hovering at around $50. Over the last decade, global economic growth has been weak, so demand for Oil has declined. Asian countries, especially China, now buy far less Crude Oil than they once did, depressing its value. Europe is also facing deep structural problems when it comes to achieving economic growth, and the price of Crude Oil could fall even further.
Present
Due to declining demand and an increase in the supply of Crude Oil, global reserves have increased considerably, pushing down the price. New discoveries and technologies like hydraulic fracturing (also known as fracking) have helped with price decreases, as well.
As an investor, it’s essential to keep a close eye on factors affecting supply and demand. From economic reports in the U.S., to EU and China meeting with OPEC, these factors play a huge role in determining the amount of Crude Oil on the market at one time.
Your Future
It’s also important to use a trusted online financial services provider to stay up-to-date with all the latest developments of Crude Oil, global trading conditions, price fluctuations, and relevant news reports. One highly regarded source of data of this type is the UFX platform. It provides some of the best trading conditions in the online trading industry, and thousands of investors have come to rely on it for their everyday trading needs.
Check out the UFX platform, read financial news, research and see why Crude Oil could be a good trading opportunity for your investment needs.
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