Are you looking for the best binary options brokers where to trade Crude Oil? Find here a comparison table designed to make it easy for you to find the best binary options broker for trading Crude Oil. Find here Crude Oil key facts, why to trade this commodity, a comparison table of all the binary options brokers, options types, possible signals and factors who influence Crude Oil price.
Crude Oil Binary Options Trading
Crude oil is arguably the most popular non-renewable commodity in the world. The modern economy largely depends on the exploration and distribution of crude oil for the generation of power. Even though world supplies of crude oil are in decline, the global economy will continue to depend on oil for the next couple of decades.
Crude Oil Binary Options Brokers Comparison
|CRUDE OIL BINARY OPTIONS BROKERS COMPARISON|
Why trade Crude Oil
- Easy to get started
Crude oil futures and options are the most actively traded commodities in the world. It is recommendable to work with a broker when trading oil options, however, you can get started relatively easily and develop a trading strategy that works for you.
- High liquidity
Oil options are incredibly liquid due to the high level of crude oil options traded on a daily basis. In other words, since crude oil options are the most actively traded, they are also very liquid.
- Lucrative investment options
Trading crude oil options is more affordable and offers greater returns compared to investing in the stock market. Oil prices tend to be volatile but this can work to the investor’s advantage; when oil prices change considerably, correct predictions of performance could gain you significant profits.
- Finite supply
Oil is a non-renewable commodity and it is therefore scarce. This offers great opportunities for investors as prices increase.
Type of available binary options for Crude Oil
The common contract types for trading Crude Oils are:
- Basic Call/Put options: Predict if the price of Crude Oil will move up or down before the expiry time.
- Touch options: Predict whether the price of Crude Oil will touch the given strike price before the expiration time.
- In/Out: Predict whether the price of Crude Oil will stay within a range of two strike prices.
Possible Signals for Crude Oil
- Ahead of the Department of Energy and American Petroleum Institute report (due June 23, 2015), analysts predict that data will show U.S. crude oil supplies are on a decline.
- Since the start of 2015, crude oil from all over the world has struggled to rebound to highs of $60 per barrel, with prices lingering between $58 and $62 for Western Texas Intermediate, Brent, Asia and Middle East oil.
- Falling worldwide stockpiles and lower demand from Japan and China may support the prices of crude oil but an increasingly strong dollar and a global oversupply could bring the prices of crude oil lower.
Factors Influencing the Price of Crude Oil
- Geopolitics - International relations could cause rapid and deep fluctuations of oil prices. This usually happens when there is increased tension between major oil producers.
- Production trends by main oil blocs - The main oil-producing blocs are the Organization for Petroleum Exporting Countries, North Sea (U.S. and Canada and Russia). Any decline or increase in oil production will impact the price of crude oil.
- Weather and disasters - Hurricanes, excessive snow, earthquakes and other such natural disasters can cause a disruption in the production of crude oil, causing a supply shortage and increasing prices.
- Oil consumer trends - Major oil consumers such as China, Japan and U.S. have an impact on demand and supply dynamics of oil and eventually on the price.
- Inventory reports - Inventory reports such as those released by the U.S. Department of Energy each week indicate the amount of crude oil supply in the U.S. The inventories show any changes in the supply and demand dynamics and may cause price fluctuations.