http://profitabletradingtips.com/trading-investing/trading-oil-futures Trading Oil Futures By www.ProfitableTradingTips.com Oil futures trading has been active as prices have fallen over the last months. Factors driving oil prices down are the continuing US oil fracking boom, continued high OPEC production and slowing economies in Japan, Europe and China. The US Federal Reserve says that shale production is steady despite the global excess and the OPEC decision to keep production high was recently in the news. "In early November, oil and gas exploration activity decreased in North Dakota and increased in Montana relative to a month earlier; production remained at record levels," the Fed said. "Despite recent declines in oil prices, officials in North Dakota expect oil production to continue increasing over the next two years." Oil prices have declined since June and touched a five-year low early this week, reflecting in part slowing global economic growth and increased domestic production in the United States. Oil prices respond to supply and demand and while production remains high, demand is falling due to economic slowdowns across the globe. Trading oil futures depends on careful analysis of these fundamentals as well as the sentiment of the market. With traders expecting that the market has overshot many have bet on a recovery of oil prices. Up and Down Markets tend to be inefficient and successful traders take advantage of that fact. Trading oil futures is no different. Morningstar notes that oil futures markets remain jittery despite a recent small up tic. Crude-oil futures rose in Asian trade Wednesday but analysts expect prices to remain volatile and market sentiment is still largely bearish. On the New York Mercantile Exchange, light, sweet crude futures for delivery in January (CLF5) traded at $67.10 a barrel, up $0.35, or 0.5% in the Globex electronic session. January Brent crude on London's ICE Futures exchange rose $0.29, or 0.4%, to $70.72 a barrel. "If the market is looking to U.S. shale for a [price] floor, Citi thinks that floor is nearer to $50 a barrel [for] WTI than the $90 a barrel level frequently cited by senior Saudis in recent weeks," Edward Morse, head of commodities research at Citigroup, said in a report. If the Citi analysis is correct there is a greater downside to the oil market than many thought. Who Suffers Many US companies have invested heavily in looking for shale oil and using high tech fracking technology to extract it. These companies carry a high debt load. So long as they were getting $100 a barrel many could profit but as prices fall there are oil companies in trouble. Some could simply fold and quit producing oil. For those trading oil futures this could mean lower supply and higher prices. MarketWatch refers to the survival of the fittest in the oil fields. Companies are dusting off contingency plans that may have seemed far-fetched when oil was trading above $100 a barrel in the summer. Oil-well and land portfolios are coming under renewed scrutiny as they decide where to wait it out and where to continue production. Since it costs Saudi Arabia and others about half what it costs in the USA to produce a barrel of oil this may turn into a game of chicken that the Middle East will eventually win. For the person trading oil futures the issue is deciding when oil will have bottomed out and starts to rise. http://youtu.be/MbSxNlG7aqM
Featured- SAN FRANCISCO (MarketWatch)—The price of oil is about $17 a barrel away from signaling that a global recession is inevitable, according to a new survey of investment professionals. The survey from ConvergEx Group polled 306 investment professionals, asking, among other things, what oil price would show that a global recession was inevitable. Read More: http://www.marketwatch.com/story/if-oil-drops-below-30-a-barrel-brace-for-a-global-recession-2015-01-22 Thanks for watching please subscribe, Like us on Facebook: https://www.facebook.com/pages/Freedom-Fighter-Reports/864945886891019 Follow us on twiiter: https://facebook.com/freedomreports21 Check out the new website: freedomfighterreports.com Sick of Facebook snooping? exodusplan.net Links mentioned in the video: http://in.reuters.com/article/2015/01/23/cuba-usa-idINKBN0KV0I720150123 http://quakes.globalincidentmap.com/# http://endtimeheadlines.org/wars-n-rumors-of-wars/gog-n-magog-watch-russia-iran-forming-military-alliance-prophecy-unfolding/ http://www.marketwatch.com/story/if-oil-drops-below-30-a-barrel-brace-for-a-global-recession-2015-01-22 http://www.marketwatch.com/story/all-of-the-major-commodities-may-fall-in-price-this-year-world-bank-says-2015-01-22 http://www.marketwatch.com/story/opecs-el-badri-oil-will-rebound-and-its-not-going-to-20-a-barrel-2015-01-22 http://rt.com/news/225451-internet-disappear-google-chairman/
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Subscribe to RTD and share the news updates... Here is a short clip from Robert Kiyosaki based upon his past predictions of the stock market collapse. Robert talks about the flaws in the retirement system and how this year things will begin to unravel. Get more great educational interviews at RTD UNIVERSITY. The best monetary and financial education not available in a classroom - http://bit.ly/RTD_University
Look Inside My Book!: http://book.themoneygps.com ******************************************************************** My Free eBooks on Fluoride, Vaccines, and GMO: http://themoneygps.com/freeebooks Tools You NEED to Prepare for the COLLAPSE: http://themoneygps.com/store ******************************************************************** Sources: "Dow Plunges 531 Points in Global Selloff - WSJ" http://www.wsj.com/articles/u-s-stock-futures-point-to-more-losses-1440159610 "World’s Richest People Lose $182 Billion as Market Rout Deepens - Bloomberg Business" http://www.bloomberg.com/news/articles/2015-08-21/world-s-richest-people-lose-182-billion-as-market-rout-deepens "Apple dumps $158B, enters bear market" http://www.usatoday.com/story/money/markets/2015/08/21/apple-crash-gets-ugly/32120759/ "Apple enters bear territory; tech stocks crushed" http://www.cnbc.com/2015/08/21/apple-looking-bearish-with-majority-of-tech-stocks-in-correction-territory.html "Signs of panic-like selling could be a short-term positive for the Dow industrials - MarketWatch" http://www.marketwatch.com/story/signs-of-panic-like-selling-could-be-a-short-term-positive-for-the-dow-industrials-2015-08-21 "Global Stocks Fall Further on China Worries - WSJ" http://www.wsj.com/articles/global-stocks-continue-to-fall-on-china-worries-1440144990 "These Charts Show How Hard China Has Hit Global Markets - Bloomberg Business" http://www.bloomberg.com/news/articles/2015-08-21/these-charts-show-how-hard-china-has-hit-global-markets "Oil suffers longest weekly losing streak since 1986 - MarketWatch" http://www.marketwatch.com/story/oil-prices-under-pressure-in-asia-after-weak-chinese-manufacturing-data-2015-08-21 "My Way News - Sinking currencies point to jitters about emerging economies" http://apnews.myway.com/article/20150821/us--world_economy-currency_chaos-769b39e5a5.html "Dow 5,000? Yes, it could happen - MarketWatch" http://www.marketwatch.com/story/dow-5000-yes-it-could-happen-2015-08-21