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Oil Futures Spread Betting |
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A review of Oil Futures Spread Betting:
Also see today's Oil Futures Spread Betting News.
Oil Futures Spread Betting - 25 May 2012
The price of US crude oil stopped for a breather yesterday, as bargain hunters joined the market and tried to push above the psychologically important $90.00 mark.
The session ended with an anaemic gain of $0.13 to $90.66, which hardly changes the overall bearish picture. If the US dollar keeps seeing safe haven demand, things could really turn ugly for buyers.
Oil Futures Spread Betting - 24 May 2012
As if the crisis in Europe was not enough to scare energy investors, the weekly US oil inventories showed that supply is at a 22 year high.
Consequently US crude oil futures plunged again, this time crossing under the $90 level to close $1.64 down for the day at $89.90.
In fact the market even saw a fresh recent low of $89.29, last seen on 1 November, which shows how much bearish sentiment is currently in the energy sector.
Oil Futures Spread Betting - 23 May 2012
The rush into the safety of the US dollar triggered a sell off in Nymex crude oil prices yesterday, with the market finishing the session $0.98 down at $91.66.
Along with anxiety about the European debt crisis, there were fresh hopes that Iran and the West might come to an agreement.
Any such agreement would further reduce the need for the risk premium that is currently built into prices.
The US weekly crude inventories, due out later today, will be closely watched for any extra clues on the next possible direction.
Oil Futures Spread Betting - 22 May 2012
Economic data comes in the form of UK inflation numbers this morning which are expected to rise month-on-month but fall year-on-year.
Even with the lack of growth in the UK economy, inflation is being propped up by high oil futures and the BoE's QE program.
Despite the recent correction in the price of crude oil, petrol prices haven't fallen from their record highs and it still costs an arm and a leg to fill up the car.
High inflation has been the bane of the UK consumer's life for the last few years as people have seen their real disposable income falling. It's little wonder that Marks & Spencer has seen such a huge drop in sales for the last year.
A rally in equities helped drive yesterday's rise in US crude prices, along with a Chinese commitment to boosting economic growth. A weaker dollar also played its part and so oil ended the day $1.30 higher at $92.57.
However, the chart continues to indicate that the overall trend remains firmly bearish. Investors will be closely watching the weekly US oil inventories for any indication of a change in the oversupply.
Oil Futures Spread Betting - 21 May 2012
In the crude oil markets, it didn't seem to matter that the dollar was under pressure on Friday, even though this would usually support the price of black gold.
Instead, weak US economic fundamentals continued to dominate the energy sector, which was already spooked by fears over reduced European oil demand.
In the end, WTI crude prices fell by $1.38 to $91.48, but not before touching $90.93, the lowest point since 3 November last year.
Oil Futures Spread Betting - 18 May 2012
The price of crude oil continued its decline yesterday by moving in the opposite direction to gold after the weak US manufacturing figures.
As the fundamental picture begins to suggest that there could be a harsh contraction in economic activity, the bears seem happy with the adage 'Sell in May and go away'. Currently, Brent crude oil futures are trading at $106.76.
Oil Futures Spread Betting - 17 May 2012
The price of crude oil continued its downward trajectory yesterday. Traders factored in further supply increases and diminished global demand.
US crude oil also fell as inventories increased by 2.1 million barrels against an expected increase of 1.4 million barrels.
Oil Futures Spread Betting - 16 May 2012
Dollar strength and increased supply data from the API kept the downward pressure on crude oil prices. The June contract is now firmly below the $93 level.
Data from the American Petroleum Institute showed that supplies have surged and traders are now re-pricing expectations for today's EIA supply data.
Oil Futures Spread Betting - 15 May 2012
Crude oil made fresh lows for the year yesterday, shedding $1.41 to close at $94.20. Sentiment remains sharply negative and it doesn’t look like this will be changing any time soon.
With turmoil in Europe and slowing Chinese growth, demand for the black gold is set to remain weak.
In addition, mounting supplies from OPEC and expectations of another increase in US stockpiles, are keeping crude oil futures on a downward trajectory.
Oil Futures Spread Betting - 14 May 2012
US crude oil futures continue to hold below the $96 level. Prices are being pressured by the slow down in China, turmoil surrounding Greece and the news from OPEC that supplies are 8% higher than consumer demand.
With more than ample supplies and negative cues in the global economy sapping demand, the price of crude looks set to remain under pressure for some time.
Spread betting and CFD trading carry a high level of risk and you can lose more than your initial deposit so you should ensure spread betting or CFD trading meet your investment objectives and if necessary seek independent advice.
Market Commentry from Financial Spreads.
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Financial Spreads - tax free* trading on over 2,500 spread betting markets. With a Financial Spreads Account you can trade commission free, 24 hours a day on stock market indices, forex, shares commodities and...read review » Financial Spreads.
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With financial spread betting you can lose more than your original stake or investment. Spread betting carries a high level of risk to your capital. Please familiarise yourself with the risks that are involved and before trading, ensure that financial spread betting matches your investment objectives. Seek independent advice where necessary.
Oil Futures Spread Betting - edited by MJ, 25 May 2012.
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Crude Oil Spread Betting Library - guide last updated: 29 April 2013
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With spread betting you can lose more than your original stake or investment. Spread betting carries a high level of risk to your capital so please familiarise yourself with the risks that are involved and, before trading, ensure that spread betting matches your investment objectives. Seek independent advice where necessary.
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* Based on current UK tax law. Tax law may change and can differ depending on your personal circumstances.
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