Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
THEY DON'T RING THE BELL AT THE CRPTO MARKET TOP! - 20th Dec 24
CEREBUS IPO NVIDIA KILLER? - 18th Dec 24
Nvidia Stock 5X to 30X - 18th Dec 24
LRCX Stock Split - 18th Dec 24
Stock Market Expected Trend Forecast - 18th Dec 24
Silver’s Evolving Market: Bright Prospects and Lingering Challenges - 18th Dec 24
Extreme Levels of Work-for-Gold Ratio - 18th Dec 24
Tesla $460, Bitcoin $107k, S&P 6080 - The Pump Continues! - 16th Dec 24
Stock Market Risk to the Upside! S&P 7000 Forecast 2025 - 15th Dec 24
Stock Market 2025 Mid Decade Year - 15th Dec 24
Sheffield Christmas Market 2024 Is a Building Site - 15th Dec 24
Got Copper or Gold Miners? Watch Out - 15th Dec 24
Republican vs Democrat Presidents and the Stock Market - 13th Dec 24
Stock Market Up 8 Out of First 9 months - 13th Dec 24
What Does a Strong Sept Mean for the Stock Market? - 13th Dec 24
Is Trump the Most Pro-Stock Market President Ever? - 13th Dec 24
Interest Rates, Unemployment and the SPX - 13th Dec 24
Fed Balance Sheet Continues To Decline - 13th Dec 24
Trump Stocks and Crypto Mania 2025 Incoming as Bitcoin Breaks Above $100k - 8th Dec 24
Gold Price Multiple Confirmations - Are You Ready? - 8th Dec 24
Gold Price Monster Upleg Lives - 8th Dec 24
Stock & Crypto Markets Going into December 2024 - 2nd Dec 24
US Presidential Election Year Stock Market Seasonal Trend - 29th Nov 24
Who controls the past controls the future: who controls the present controls the past - 29th Nov 24
Gold After Trump Wins - 29th Nov 24
The AI Stocks, Housing, Inflation and Bitcoin Crypto Mega-trends - 27th Nov 24
Gold Price Ahead of the Thanksgiving Weekend - 27th Nov 24
Bitcoin Gravy Train Trend Forecast to June 2025 - 24th Nov 24
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24
Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Crude Oil CFDs - What to Expect in the Coming Months

Commodities / Crude Oil Jul 29, 2016 - 02:01 PM GMT

By: Boris_Dzhingarov

Commodities

The oil market is globalised, and it works for 24 hours a day. It is also very sensitive, so prices are constantly fluctuating. This is why day traders can benefit from this market, particularly if they trade on oil prices with the help of CFDs (contracts for difference).


If you plan on working with a crude oil CFD broker in the near future, continue reading to learn more about what you can expect from these CFDs in the coming months. This will help you make the most sound financial and trading decisions that will yield the best results.

Much Higher Oil Prices Expected in Coming Months

Experts have been talking a lot recently about the fact that oil prices will be much higher in the near future. This is because the actual cost of producing oil has actually doubled over the last few decades, particularly since the ‘90s. For the global economy, that is not good news at all.
Drilling activity, however, has been fluctuating. As of July 2016, drilling activity was at its highest point since March of the same year. But that number is still 30 per cent under the rate of drilling at the beginning of the year.

Demand Has Decreased, and There Is a Lot of Supply

Another factor that will affect oil prices is the fact that, as of July, the supply of oil has been overabundant, while the demand for it has actually gone down. The global demand for oil in the third quarter of the year was growing at less than 1/3 of the growth rate at the same time in 2015. And the growth has been slower because it has been weighed down by slowed economic growth. As demand from various developed economies has been falling, growth from India and China has also slowed down. As a result, US crude oil has hit a three-month low.

What to Expect

Over the next few months, until around November 2016, oil prices are predicted to fall. Therefore, if you are planning on trading in crude oil CFDs, you could benefit if you make your trades wisely. Prices will continue to fall or at least hold relatively steady until around October. November is projected to show a bit of an increase in crude oil prices, with a pretty continuous rise in prices throughout 2017.

Within the next six to nine months, the demand for oil should begin to increase again. At that point, it should also begin to exceed the production of oil, thereby allowing prices to start rising again as supply falls and demand increases. Even though there are elevated storage levels of existing oil that can be used to keep prices more stable, the pricing will continue to increase over time.

The key to remember here is that oil prices are always changing, so it is important to keep an eye on the news. Even though these predictions may very well come true, circumstances may occur that shift the industry and can cause prices to go in the other direction instead.

By Boris Dzhingarov

© 2016 Copyright Boris Dzhingarov - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in