Oil is known as the one of the most traded energy assets in the world. Nowadays, its share is around ⅓ in the global energy supply and it has a high level of liquidity on the market.
The price of oil moves quite often during a day, because a lot of information comes either geopolitical or macroeconomic publications appear. The price of this asset is most influenced by supply and demand. For example, if the market supply is high, the price is low, and if there is a supply deficit, the price may rise sharply.
What reports should be followed when trading oil?
The most frequently published reports have the greatest impact on oil price fluctuations. For example, the report on API (American Petroleun Insitute) stocks through which producers and market participants report stock levels. Or the report on crude oil stocks is published every Wednesday by the DoE and shows the change in US oil reserves and stocks. The report on the change in the number of oil rigs is crucial primarily for the United States. Part of the oil production comes from shale mining, and maintaining production in the US requires a constant change of oil facilities.
Why you should choose oil as investment?
Many investors believe that the oil market reflects the current situation better than the stock market. Oil is the most important energy commodity globally, and the importance of the oil market makes trading smooth and steady.
You can invest in oil using the MetaTrader trading platform, and the easiest way to expose yourself to oil is to choose CFD OIL or OIL WTI. The trading system of the MetaTrader platform is a complete and reliable one, offering promptness and security in trading, which is important when it comes to leverage instruments. In the platform you can place Stop Loss or Take Profit orders depending on your own investment strategy.
Stock market oil trading requires knowledge of fundamental and technical analysis, capital management skills and emotional management. In other words, you need a strategy and experience to trade for profit. And because everything comes from the exercise, it is recommended to open a demo account on which you will test everything in real trading conditions, with virtual money. Once you succeed on the demo account, you can think of a real investment in a real trading account in order to make a profit on the oil market.