Oil is traditionally one of the major commodities on the market, as crude oil is the raw material for everything that makes various sorts of engines move, including petrol, diesel, and even paraffin. Oil prices fluctuate significantly as they are influenced by many diverse factors, including the dynamics of new and existing sources, the emergence of new drilling technologies, as well as political developments.
Oil trading is seen as attractive, because the market is especially liquid, and despite all the recent changes and developments, demand for oil is constantly high in modern societies, while oil is produced and refined much easier than alternative energy sources.
To trade successfully in this market, you have to be familiar with the benchmarks like Brent Crude (low-sulphur, “sweet”, and light, mostly sourced from the European North Sea) and WTI (“sweet” and light, made in the US). Oil is also heavily influenced by the political relationships of OPEC countries, the great world powers like the US, Russia, Europe, and China. Analysing historical trading data in conjunction with political events could also help you monitor and discover trends and interdependences to apply in your own projections and estimations. With TradeBNP, you can take advantage of tools and support to help you on your journey.