Oil is quickly gaining the title of most important geopolitical resource. Investors are scrambling to get a piece.
Even though oil prices saw a recent strong pullback in oil prices, it’s likely that triple-digit oil will be around for a while and is causing problems at the pump as well as elsewhere. Rising oil prices don’t necessarily have to be a disaster. PrimeXBT can show that rising oil prices can also mean opportunities.
This article will provide information about how to trade oil safely as volatility in the global markets increases.
OPEC, War & The Pandemic – The Perfect Storm
Oil prices reached new heights after the pandemic because of strong demand. The trend was already gaining momentum and inflation has spiraled out of control. However, the war in Ukraine has caused a huge disruption to where oil is sourced around the world.
For example, the European Union has been eliminating oil exports from Russia. The sanctions will stop as much as 90% Russian oil from reaching other European countries. This ban will further limit the world’s oil supply, already depleted by two years of pandemic lockdowns. During this period, OPEC saw a significant drop in production. OPEC is the Organization of the Petroleum Exporting Countries. It includes 13 oil-producing nations.
Crude oil needs to be refined into gasoline. COVID hampered the oil’s refining capabilities. Additionally, the Biden administration decided to scrap the Keystone pipeline. This would have brought a steady and more stable supply of crude oil to the United States. The entire world now faces a severe energy crisis that is contributing to record levels of inflation.
Incorporating Oil Contracts into the Portfolio
Soaring oil prices don’t need to be a problem at the pump or in heating your home. You can make a profit trading it, whether you are long-term or short-term. Profits have been good because of the fact that Brent, Crude oil, Natural gas and other energy products have been long. Crude oil has risen more than 500% since pandemic lows, and more than 75% by 2022.
However, energy commodities are not immune to recent market volatility. Crude oil prices saw a 10% decline in a single day, bringing them back below $100 per barrel for the first month in months. PrimeXBT allows you to add long and short positions to any portfolio.
JP Morgan used this term to describe Russia’s worst-case scenario, which could see the price per barrel rise to more than $380. Recent highs could see gasoline prices more than triple.
PrimeXBT – Brent and Crude Oil Trading
PrimeXBT is an all-in-one margin trading platform that allows you to trade crude and Brent oil as well as natural gas, gold and silver, stock indices and crypto. PrimeXBT allows traders to create a highly profitable and risk-averse portfolio of uncorrelated assets that can withstand all macro conditions. You can open long and short positions, and leverage.
Built-in tools for technical analysis allow traders to assess the market and trends, then decide on a position. These tools, when combined with technical indicators can be used to confirm or alert traders when a trend is changing. These tools and many others are available via the PrimeXBT mobile app, which is free for Android and iOS users. The trading platform offers a wide range of options, including copy trading and buying crypto.
Marla Brooks – Financial Analysis
My name is Marla Brooks, and I am the mainstream behind the”observednews.com” for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.