Oil Spread Trading Markets Fall as Saudi Arabia Prepares to Meet Shortfall

CFDs, Crude Oil Trading, Finance, Financial Markets, Investing, Personal Finance, Spread Trading, Trading No Responses »
Mar 302012

Oil dropped in recent crude oil trading activity as Saudi Arabia sought to knock back crude’s price rise that has threatened the global economy, with the oil minister offering the most detailed argument to date that the OPEC nation was prepared to meet any supply shortfall.

Saudi Arabian Oil Minister Ali al-Naimi said the kingdom was pumping 9.9 million barrels per day, the most in decades, supplying every customer request, and was willing to turn the taps to the maximum 12.5 million bpd immediately if needed.

The kingdom, which has tried to calm oil markets on edge about the potential loss of Iranian supplies this year, has filled storage levels outside the country to 10 million barrels to help build a cushion for markets.

Looking at the trading charts, oil prices have risen 15% this year as US and European sanctions aimed at ending Iran’s nuclear ambitions have prompted Tehran to threaten to close the Strait of Hormuz shipping lane.

Saudi shipments to the United States have jumped 25% this year and were expected to increase even more in coming months.

US Treasury Secretary Timothy Geithner said the Obama administration welcomed the OPEC kingpin’s decision to fill any supply gap created by loss of Iranian crude.

Saudi Arabia is the only country with large amounts of spare oil production capacity available to help compensate for global disruptions.

The return of Libya’s exports after disruptions caused by the civil war, as well as the increased supply from Saudi Arabia could help to calm markets on edge about replacing Iranian barrels.

Libya plans to export almost 1.4 million bpd of crude oil in April, a senior National Oil Corp official said, exceeding deliveries in February 2011 before the uprising that ousted Muammar Gaddafi.

If you are trading the CFD or spreads markets note that, Saudi Arabia’s oil exports rose 143,000 bpd in January month-on-month, according to government data, while total production rose 61,000 bpd to 9.871 million bpd in January.

US Domestic crude stocks dropped 1.16 million barrels to 346.29 million barrels in a recent report, according to the US Energy Information Administration.

Distillate stocks rose by 1.76 million barrels, compared with predictions for a 1.6 million barrel drawdown, to 136.58 million barrels. Gasoline inventories fell 1.21 million barrels to 226.91 million barrels. Analysts had projected a 1.0 million barrel decline.

Contracts for Difference Trading and Financial Spread Trading do involve a high level of risk. Investment formats such as these are margined which means that it is possible to lose more than your original stake.

You should always invest using capital that you can afford to lose; before making any trades make sure that you recognise the risk. Be aware that Contracts for Difference Trading and Spread Trading might not always be suitable for your trading strategy; where you think it is necessary obtain independent trading guidance.

Posted by Victoria at 11:03 am

Oil Spread Trading Markets Resilient Despite Interventions

Crude Oil Trading, Finance, Financial Markets, Industry News, Investing, Personal Finance, Spread Trading, Trading No Responses »
Mar 222012

Game group finally goes into administration after their board concludes that there is no longer any equity value left in the group.

With a similar business model to the struggling retailer HMV, Game group has succumbed to the superior competition such as Amazon and other online stores.

On a brighter note the chancellor unveiled his budget yesterday afternoon, cutting the 50p tax rate to 45 pence along with various other measures to try and encourage business to the UK.

The markets started the yesterday higher but slowly lost ground as the recent bull rally started to loose momentum.

US home sales were slightly worse than expected suggesting a marginally slowing us housing market and oil spread trading markets, even after intervention over the last few days, are still extremely high, which can only be hindering economic growth.

Retail sales in the UK and unemployment claims in the US today will be anxiously waited for as the bulls could do with some more positive economic data to help push this rally further.

Although the situation in Europe and impending inflation pressures can only be ignored for so long.

We can only hope policy makers have not overlooked this.

Contracts for Difference Trading and Financial Spread Trading do involve a high level of risk. Investment formats such as these are margined which means that it is possible to lose more than your original stake.

You should always invest using capital that you can afford to lose; before making any trades make sure that you recognise the risk. Be aware that Contracts for Difference Trading and Spread Trading might not always be suitable for your trading strategy; where you think it is necessary obtain independent trading guidance.

Market review by Spreadex.

Posted by Victoria at 11:03 am

FinancialSpreads Launch a New CFD Trading Service

CFDs, Commodities Trading, Crude Oil Trading, Finance, Financial Markets, Forex, Gold Trading, Industry News, Investing, Personal Finance, Spread Trading, Stock Market, Trading No Responses »
Mar 202012

Financial Spreads, the UK spread trading company, has launched a low cost Contracts for Difference (CFD) service.

Financial Spreads is now offering CFDs on all its markets which means that clients can speculate on over 2,500 CFD markets including UK and US shares, forex, stock market indices, commodities, bonds and interest rates.

Unlike many CFD brokers, Financial Spreads is offering a commission-free service. Instead of a commission, a small spread is applied to the underlying market; for example, on FTSE 100 shares the spread is as low as 0.1%.

Benefits of using the new CFD trading service include:

• No commissions
• No brokers’ fees
• Low minimum margin rates
• Professional level trading charts for every market
• 24 hour trading trading on a range of popular markets^
• No stamp duty^^

The ability to trade CFDs and spread bets from the same account

Adam Jepsen, spokesman for FinancialSpreads.com, commented, “As with our financial spread trading service we are committed to low cost trading.

“With CFD trading the primary costs are normally the ‘commission’ and the ‘spread’, i.e. the difference between the sell and buy price. Therefore it typically costs more to trade with companies that have high commission levels and wide spreads.

“If an investor trades CFDs with FinancialSpreads.com there are no commissions. We also offer some of the tightest spreads in the market. E.g. the spread applied to FTSE 100 shares is 0.1%, i.e. just 0.05% per side of the underlying share.”

While the firm offers clients an array of risk management tools such as Stop Loss orders, Guaranteed Stop Loss orders, Limit orders and Trailing Stops, investors should be aware that both CFD trading and spread trading are leveraged and therefore carry a high level of risk.

“With both CFDs and spread trading, investors can lose more than their initial deposit so you should ensure these forms of trading meet your investment objectives. Always seek independent financial advice if you do not understand the risks,” added Jepsen.

About Financial Spreads

Financial Spreads offers both CFDs and spread trading on more than 2,500 markets including shares, stock market indices, commodities, forex and treasuries. The service is commission-free and there are no brokers’ fees.

Clients can trade CFDs and financial spread trading markets via FinancialSpreads.com and over the phone. Both CFDs and spread betting give investors the option to speculate on markets to go up or down.

Financial Spreads is a trading name of London Capital Group (LCG) which is authorised and regulated by the Financial Services Authority. Registered address, 2nd Floor, 6 Devonshire Square, London, EC2M 2AB.

The information and comments provided herein under no circumstances are to be considered an offer or solicitation to invest and nothing herein should be construed as investment advice. The information provided is believed to be accurate at the date the information is produced.

^ From Sunday evening to Friday evening, see FinancialSpreads.com for details.
^ ^ Tax treatment depends on individual circumstances and may change in the future.

Posted by Victoria at 11:37 am

US Dollar Spreads Strengthen as Bernanke Kills Off Further QE

Crude Oil Trading, Finance, Financial Markets, Forex, Industry News, Investing, Personal Finance, Spread Trading, Trading No Responses »
Mar 152012

It is certainly a risk-on trading environment at present although we are seeing a change in correlations between equities and commodities due to a strengthening dollar.

In forex spread trading, the dollar has made gains since Bernanke killed off speculation of further monetary stimulus which has put downward pressure on dollar denominated commodities.

It is also worth noting the dollar seems to be now moving in tandem with a growing US economy as opposed to being a risk-off asset.

China’s slowdown is another major factor hurting commodities recently and if oil supply fears abate as the Iran tensions calm down, we could possibly see oil (NYMEX) drop back towards $100.

Contracts for Difference Trading and Financial Spread Trading do involve a high level of risk. Investment formats such as these are margined which means that it is possible to lose more than your original stake.

You should always invest using capital that you can afford to lose; before making any trades make sure that you recognise the risk. Be aware that Contracts for Difference Trading and Spread Trading might not always be suitable for your trading strategy; where you think it is necessary obtain independent trading guidance.

Market review by Spreadex.

Posted by Victoria at 11:56 am

German Economic Data Boosts European Shares Spread Trading Markets

Commodities Trading, Crude Oil Trading, Finance, Financial Markets, Investing, Personal Finance, Spread Trading, Stock Market, Trading No Responses »
Mar 142012

European and US equity indices performed well yesterday, helped by the apparent absence of negative news flows and strong German economic data.

The shares spread trading market this week could be said to look healthier than it did two weeks earlier at a similar price for one good reason.

At the beginning of last week the sellers tested those looking to buy into the current market, and the negative price action created as a result of that selling quickly recovered, within a week in fact.

Given that one of the most significant concerns of participants of late has been the virtually uncorrected positive run equities have had since late last year, the cash that investors believed would be taken from the table has to some extent happened.

This, then, potentially bodes well for anyone long of stocks at the moment, with profit-taking so far comfortably absorbed.

On the main market in London yesterday, spread trading investors turned to the continuing volatility seen from Gulf Keystone (GKP), an oil and gas explorer operating in the northern Iraq region of Kurdistan listed through AIM.

The stock, subject to various on-going rumours, traded higher at 10% after falling some 16% on Monday in spite of a positive operational update.

Various broker comments pointing to the political risks surrounding the company’s licences and a rumour that Exxon Mobil (XOM) could abstain from bidding for the company or its assets dragged the stock’s price much lower from its recent intra-day high of 465p.

Given the recent eye-watering volatility, leverage ought to be used only with extreme caution.

Contracts for Difference Trading and Financial Spread Trading do involve a high level of risk. Investment formats such as these are margined which means that it is possible to lose more than your original stake.

You should always invest using capital that you can afford to lose; before making any trades make sure that you recognise the risk. Be aware that Contracts for Difference Trading and Spread Trading might not always be suitable for your trading strategy; where you think it is necessary obtain independent trading guidance.

Market review by Spreadex.

Posted by Victoria at 11:41 am

Crude Oil Trading Market Rebounds on News of EU Fiscal Accord

CFDs, Commodities Trading, Credit Markets, Crude Oil Trading, Finance, Investing, Personal Finance, Spread Trading, Trading No Responses »
Dec 142011

Crude oil prices recovered some of their losses following a choppy start, on news of an accord for a closer Euro-zone fiscal union & news about a Chinese fund for American & European investment.

Overall, oil recorded a 1.5 per cent loss recently, & sources said scepticism over the latest EU agreement to tackle the debt crisis limited any move higher in crude oil prices.

Light volume trading helped keep crude oil trading erratic, & the commodity didn’t get much of a lift from numbers showing American consumer sentiment increased at the start of December to its highest point in six months.

Persistent tensions between Iran & the West along with tensions remaining in parts of the Gulf, Syria & Egypt continued to support crude oil prices. Note that you can check live crude oil charts with ETX Trading and GFT Markets.

The risk of a disruption of supply from Iran has increased with EU leaders debating more sanctions against Tehran in an attempt to put pressure on the country over its nuclear program although the European Union did not make any calls for an embargo on crude oil.

US crude oil & product stocks increased in recent trading as crude imports rose, US EIA figures revealed.

Crude stocks in the US increased by 1.34m barrels to 336.08m barrels according to the Energy Information Administration. Market analysts had projected an average 600,000 barrel draw-down.

Distillates, which include diesel & heating oil, increased by 2.53m barrels to 141.02m barrels, in comparison to average estimates for a 1.2 million-barrel climb.

Gasoline stocks increased by 5.15m barrels to 214.99m barrels, in comparison to a 700,000 barrel build anticipated by market analysts.

OPEC crude oil producers, in disagreement over production policy since June, appear set to agree a new production goal that legitimises current cartel production around 30m bpd at a mid December meeting.

OPEC’s foremost price hawk, Iran, appears to have abandoned its campaign to have Gulf Arab countries including leading producer Saudi Arabia scale back supply.

The Organisation of the Petroleum Exporting Countries sees average demand in 2012 for OPEC crude at 30m barrels a day compared to 29.8m barrels per day from the United States EIA & 30.4m barrels a day from the Paris based International Energy Agency.

Contracts for Difference Trading and Financial Spread Trading do involve a high level of risk. Investment formats such as these are margined which means that it is possible to lose more than your original stake.

You should always invest using capital that you can afford to lose; before making any trades make sure that you recognise the risk. Be aware that Contracts for Difference Trading and Spread Trading might not always be suitable for your trading strategy; where you think it is necessary obtain independent trading guidance.

Market review by Pip Trade.

Posted by Victoria at 10:30 am

Tighter Credit Conditions Send Commodities Spread Trading Markets Lower

CFDs, Commodities Trading, Credit Markets, Crude Oil Trading, Finance, Financial Markets, Gold Trading, Investing, Personal Finance, Spread Trading, Trading No Responses »
Dec 032011

Commodities were primarily down recently with most sectors posting drops as a stronger dollar, a rise in borrowing costs for Italy and tighter credit in the commodities sector eroded investor confidence. Gold bullion & crude oil pared losses with oil lifted by concerns about Middle-East tension.

Whilst trading was thin due to the USA’s Thanksgiving holiday, traders will be watching figures for signs of economic recovery in the US, the world’s biggest crude oil user, & any ratings cut for Euro zone countries. American new home sales for October & monthly house prices for September are still to be released.

The US dollar increased to a seven week high against the single currency, & was also robust against a basket of currencies, putting downwards pressure on most commodities including the crude oil market. Crude oil, along with other dollar denominated commodities, has a tendency to be negatively correlated with the US dollar as it becomes more costly for those holding other currencies.

In the agricultural markets, American grains dropped on concerns about the weakening world-wide economy & the more robust US dollar, in a post-holiday shortened trading session. In the softs markets, cocoa hit a new 2-1/2 year low, sugar fell to the lowest mark in over 5-1/2 months & coffee also suffered losses. Investors can speculate on a variety of commodities with Spreadex and through a Capital Spreads account.

Bullion dropped in recent trading, pressured by declines in stock markets, technical selling & gains in the US dollar. Despite the fact that bullion has followed riskier asset classes of late, physical gold bullion held by worldwide exchange traded funds increased to record highs, indicating some safe haven buying by jittery traders.

IMF figures showing that central banks bought almost 26 tonnes of bullion in October, boosted by an almost 20 tonne purchase by Russia and buying from Belarus, Mexico & Colombia underpinned this investor buying sentiment.

Contracts for Difference Trading and Financial Spread Trading do involve a high level of risk. Investment formats such as these are margined which means that it is possible to lose more than your original stake.

You should always invest using capital that you can afford to lose; before making any trades make sure that you recognise the risk. Be aware that Contracts for Difference Trading and Spread Trading might not always be suitable for your trading strategy; where you think it is necessary obtain independent trading guidance.

Market review by Pip Trade.

Posted by Victoria at 8:20 am

Eurozone Sovereign Debt Crisis Pushes Oil Spreads Lower

CFDs, Commodities Trading, Credit Markets, Crude Oil Trading, Finance, Financial Markets, Investing, Personal Finance, Spread Trading, Trading No Responses »
Nov 292011

Crude dropped in recent trading on worries that demand for crude oil will be hurt by the spreading European debt crisis. Crude recorded its second straight weekly loss but oil’s slide was limited by geopolitical tensions around Iran’s nuclear program & Middle-East unrest.

US light sweet crude oil stocks dropped dramatically in recent trading action as oil refinery rates increased & crude imports dropped, American EIA figures revealed.

Crude stocks in the US dropped by 6.22m barrels to 330.82m barrels the Energy Information Administration said. Financial analysts had projected a 500 000 barrel build on average. Oil stocks dropped to their lowest mark since late January, Energy Information Administration numbers revealed. If you are looking to take a position on the either the US crude oil market or the Brent crude oil market you can do so with ETX Capital and GFT Markets.

Gasoline stocks increased 4.48m barrels to 209.63m barrels, in comparison to a 1.1 million-barrel build estimate by financial analysts.

Distillates, which include diesel & heating oil, dropped 770,000 barrels to 132.96m barrels, in comparison to an average forecast of a 1.3 million-barrel draw. Stocks of distillate, at their lowest level since late 2008, have recorded their biggest eight week fall since 1995 over the past two months, Energy Information Administration numbers revealed.

Crude oil was pressured by a weaker reading on American third quarter economic growth. American gdp increased at a 2.0% annual rate in the third-quarter, according to the Commerce Department’s second estimate, less than the previous estimate of 2.5% & below economists’ estimates.

The West isn’t the only area facing weak economic growth that could possibly hurt crude oil demand going forward. The Chinese economy faces increasing risks from the European sovereign debt crisis & from debt held by the local Chinese governments according to the World Bank, although it said China would be able to engineer a soft landing through easing monetary policy.

Contracts for Difference Trading and Financial Spread Trading do involve a high level of risk. Investment formats such as these are margined which means that it is possible to lose more than your original stake.

You should always invest using capital that you can afford to lose; before making any trades make sure that you recognise the risk. Be aware that Contracts for Difference Trading and Spread Trading might not always be suitable for your trading strategy; where you think it is necessary obtain independent trading guidance.

Market review by Pip Trade.

Posted by Victoria at 5:42 pm

Crude Oil Market Hits 15 Week High as US Consumer Sentiment Improves

CFDs, Commodities Trading, Crude Oil Trading, Finance, Financial Markets, Investing, Personal Finance, Spread Trading, Trading No Responses »
Nov 162011

Oil prices increased in recent crude oil market activity, reacting to measures by Italy & Greece to address their economic & political crises & to improved American consumer sentiment. Crude oil closed at a 15 week high & recorded a sixth consecutive weekly gain.

Nymex crude oil & crude oil product stocks dropped in recent market action, with stocks of distillates falling by more than 6m barrels, on a drop in crude imports & as refineries processed less crude oil, American EIA figures revealed.

Crude stocks in the US dropped 1.37m barrels to 338.09m barrels according to the Energy Information Administration. Market analysts had projected an average 400 000 barrel build. If you are looking to speculate on crude oil price to shift up and/or down you can do so with an FXCM CFD account or through the ETX Capital spread trading account.

Distillates, which encompass heating oil & diesel, dropped by 6.02m barrels to 135.87m barrels, in comparison to an average estimate for a 2 million-barrel draw. Gasoline stocks dropped by 2.11m barrels to 204.17m barrels, in comparison to a 300 000 barrel build estimate by market analysts.

The grim world-wide economic prospects, in combination with high crude oil prices, prompted the IEA, energy adviser to 28 industrialised countries, to cut its world crude oil demand estimates this year & next.

The IEA, which advises major oil consuming nations on energy policies, said crude oil prices could well surge by a third heading above their all time high of $147 a barrel. OPEC said the main risk was falling prices.

Relations between OPEC & the International Energy Agency reached lows earlier this year as the Organisation of the Petroleum Exporting Countries failed to agree on an rise in crude oil production & the International Energy Agency released its stocks to compensate for losing Libyan crude oil & to support flagging economic recovery.

The Organisation of the Petroleum Exporting Countries has already signalled that it sees no need to free up any extra crude oil on the markets when it next meets in December but it will probably face more pressure from consumers as the International Energy Agency insists that the current prices are hurting the economy.

The Organisation of the Petroleum Exporting Countries, which produces one third of the barrels in the world & has faced unparalleled unrest across its member states this year, stated in its monthly report that it was not overly worried by underinvestment in its member states in light of current crude oil prices & big increases in government spending.

Contracts for Difference Trading and Financial Spread Trading do involve a high level of risk. Investment formats such as these are margined which means that it is possible to lose more than your original stake.

You should always invest using capital that you can afford to lose; before making any trades make sure that you recognise the risk. Be aware that Contracts for Difference Trading and Spread Trading might not always be suitable for your trading strategy; where you think it is necessary obtain independent trading guidance.

Market review by Pip Trade.

Posted by Victoria at 6:01 pm

Crude Oil Trading Prices Rise as OPEC Supply Continues to Drop

CFDs, Commodities Trading, Crude Oil Trading, Finance, Financial Markets, Investing, Personal Finance, Spread Trading, Trading No Responses »
Nov 092011

In crude oil trading, prices increased recently even as uncertainty about Greece & euro-zone debt problems blunted a move higher triggered after the United States’ October jobs figures encouraged some spread traders.

Crude oil rallied briefly on news that American nonfarm payrolls increased in October, though less-than-expected. Some speculators were encouraged by a fall in the unemployment rate which hit a six month low of 9.0% & upward revisions to job gains in prior months. Crude oil jumped 17.7 per cent in October, its largest gain in percentage terms since May 2009.

Nymex crude oil stocks increased & crude oil product stocks were mixed, even as imports of crude fell, EIA numbers revealed in recent market action. Crude stocks in the USA increased 1.83m barrels to 339.46m barrels, the Energy Information Administration said. Financial analysts had projected a 1.1 million-barrel build on average. Note that you can speculate on Nymex (US Crude) with IG Index Trading and Financial Spreads.

Gasoline stocks increased 1.36m barrels to 206.27m barrels, in comparison to a 600,000 barrel-draw anticipated by market analysts. Distillates, which consist of heating oil & diesel, dropped 3.58m barrels to 141.89m barrels, in comparison to an average estimate for a smaller, 1.5 million-barrel draw.

OPEC supply has dropped, for a second month, from August’s total of 30.15m barrels a day which was the group’s best since October 2008. Saudi Arabia & its OPEC allies from the Gulf raised production levels unilaterally after being unable at the group’s latest meeting in June to persuade other members to agree on a coordinated rise to meet a shortfall in Libyan supplies.

The Organisation of the Petroleum Exporting Countries holds its next gathering on the 14th of December. Secretary General, Abdullah al-Badri, forecast in an interview given last month that the group would reach an agreement when it convenes in Vienna.

Officials in the Organisation of the Petroleum Exporting Countries have said that the prospect of Gulf members cutting production substantially is not likely at current price levels. The International Energy Agency doesn’t want OPEC to cut production at its December gathering because it expects that demand in 2012 for OPEC crude oil will grow by 0.5m barrels a day more than the group’s October production.

Contracts for Difference Trading and Financial Spread Trading do involve a high level of risk. Investment formats such as these are margined which means that it is possible to lose more than your original stake.

You should always invest using capital that you can afford to lose; before making any trades make sure that you recognise the risk. Be aware that Contracts for Difference Trading and Spread Trading might not always be suitable for your trading strategy; where you think it is necessary obtain independent trading guidance.

Market review by Pip Trade.

Posted by Victoria at 3:40 pm
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