Trading Crude Oil & other energies are now easier
Trade Crude Oil and expand your investment portfolio
Advantages of Trading Energies with PomeloFx
PomeloFX offers CFDs on a wide range of cash and forward commodities
instruments, including Brent and WTI Crude Oil.
Crude Oil is the most actively traded commodity worldwide and its high volatility makes it a popular choice for short-term traders who search for potential trading opportunities in the fast price movements of this market. However, it has to be noted that volatility may create opportunities but at the same time creates more risk to your investment.
Generally, energies are innately volatile markets because of the direct impact that world events can have on supply. Numerous political and environmental factors can affect energy prices, and therefore supply and demand, including economic growth, political instability in oil and gas producing countries, weather forecasts as well as extreme weather conditions and government regulations.
Trading Derivatives on energies allows for portfolio diversification and greater flexibility as you can trade freely without owing the actual asset.
Start trading Energies with PomeloFx
Signup for an account
Complete registration, Log in to your Client Area and upload the required documents.
Verify your account
Once your documents are approved, create a Live Trading account.
Add funds & trade
Select a payment method, fund your trading account and start trading.
Energies Trading FAQ
Energy trading involves products like crude oil, electricity, natural gas and wind power. Since these commodities often fluctuate abruptly they can be attractive to speculators.
Oil prices change daily and are determined by traders who bid on oil futures contracts. This contract is an agreement that gives traders the right to purchase oil at a set price based on the projection made. Both the buyer and seller set delivery date in the future at the set price.
There are several factors that traders consider.
- Oil Demand: Estimates are provided by the Energy Information Agency; seasonal considerations are taken into account. As demand increases the price should go up.
- Current Supply: OPEC supply and the US shale oil production are analyzed. As supply increases the price should go down.
- Access to future supply: This depends on oil reserves in the US refineries, and the world. These reserves can be retrieved easily if prices get too high.
- World Crisis: A potential crisis could increase oil process since traders worry a war or famine for example could limit the overall supply.
- Man-made disasters and natural disasters such as hurricanes, floods, and oil spills can all influence the price of oil and the world supply of oil inventory.
- Currency strength: Most Energy products are priced in USD, and thus it would be wise to monitor the dollar index in order to better forecast the price dynamics.
For new and experienced traders interested in trading energies and oil, PomeloFx has many additional services and benefits to help you get started. Educational tools, including our Trading For Beginners articles to help you succeed. Professional customer service and dedicated account managers for any questions you may have, and you can now chat directly with them.