Best of the Week
Most Popular
1. 2019 From A Fourth Turning Perspective - James_Quinn
2.Beware the Young Stocks Bear Market! - Zeal_LLC
3.Safe Havens are Surging. What this Means for Stocks 2019 - Troy_Bombardia
4.Most Popular Financial Markets Analysis of 2018 - Trump and BrExit Chaos Dominate - Nadeem_Walayat
5.January 2019 Financial Markets Analysis and Forecasts - Nadeem_Walayat
6.Silver Price Trend Analysis 2019 - Nadeem_Walayat
7.Why 90% of Traders Lose - Nadeem_Walayat
8.What to do With Your Money in a Stocks Bear Market - Stephen_McBride
9.Stock Market What to Expect in the First 3~5 Months of 2019 - Chris_Vermeulen
10.China, Global Economy has Tipped over: The Surging Dollar and the Rallying Yen - FXCOT
Last 7 days
Forex Trading Management: The Importance of Being Prepared - 19th Feb 19
Gold Stocks are Following This Historical Template - 19th Feb 19
Here’s Why The Left’s New Economic Policies Are Just Stupid - 19th Feb 19
Should We Declare Emergency for Gold? - 19th Feb 19
Why Stock Traders Must Stay Optimistically Cautious Going Forward - 19th Feb 19
The Corporate Debt Bubble Is Strikingly Similar to the Subprime Mortgage Bubble - 18th Feb 19
Stacking The Next QE On Top Of A $4 Trillion Fed Floor - 18th Feb 19
Get ready for the Stock Market Breakout Pattern Setup II - 18th Feb 19
It's Blue Skies For The Stock Market As Far As The Eye Can See - 18th Feb 19
Stock Market Correction is Due - 18th Feb 19
Iran's Death Spiral -- 40 Years And Counting - 17 Feb 19
Venezuela's Opposition Is Playing With Fire - 17 Feb 19
Fed Chairman Deceives; Precious Metals Mine Supply Threatened - 17 Feb 19
After 8 Terrific Weeks for Stocks, What’s Next? - 16th Feb 19
My Favorite Real Estate Strategies: Rent to Live, Buy to Rent - 16th Feb 19
Schumer & Sanders Want One Thing: Your Money - 16th Feb 19
What Could Happen When the Stock Markets Correct Next - 16th Feb 19
Bitcoin Your Best Opportunity Outside of Stocks - 16th Feb 19
Olympus TG-5 Tough Camera Under SEA Water Test - 16th Feb 19
"Mi Amigo" Sheffield Bomber Crash Memorial Site Fly-past on 22nd February 2019 VR360 - 16th Feb 19
Plunging Inventories have Zinc Bulls Ready to Run - 15th Feb 19
Gold Stocks Mega Mergers Are Bad for Shareholders - 15th Feb 19
Retail Sales Crash! It’s 2008 All Over Again for Stock Market and Economy! - 15th Feb 19
Is Gold Market 2019 Like 2016? - 15th Feb 19
Virgin Media's Increasingly Unreliable Broadband Service - 15th Feb 19
2019 Starting to Shine But is it a Long Con for Stock Investors? - 15th Feb 19
Gold is on the Verge of a Bull-run and Here's Why - 15th Feb 19
Will Stock Market 2019 be like 1999? - 14th Feb 19
3 Charts That Scream “Don’t Buy Stocks” - 14th Feb 19
Capitalism Isn’t Bad, It’s Just Broken - 14th Feb 19
How To Find High-Yield Dividend Stocks That Are Safe - 14th Feb 19
Strategy Session - How This Stocks Bear Market Fits in With Markets of the Past - 14th Feb 19
Marijuana Stocks Ready for Another Massive Rally? - 14th Feb 19
Wage Day Advance And Why There is No Shame About It - 14th Feb 19
Will 2019 be the Year of the Big Breakout for Gold? - 13th Feb 19
Earth Overshoot Day Illustrates We are the Lemmings - 13th Feb 19
A Stock Market Rally With No Pullbacks. What’s Next for Stocks - 13th Feb 19
Where Is Gold’s Rally in Response to USD Weakness? - 13th Feb 19

Market Oracle FREE Newsletter

The Real Secret for Successful Trading

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.


© 2005-2019 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

6 Critical Money Making Rules