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Category: Crude Oil

A naturally found substance, crude oil is also one of the most traded commodities. It is crude oil that is further refined so as to make petroleum products. Just like with every other commodity, crude oil too has its specific ticker symbol, contract value and margin.

The margin is variable as it keeps changing as per the volatility in the market as well as according to the current value of the contract. If you are interested in crude oil trading or are already trading in this commodity, it is important for you to know that over the past 50 years the price of this commodity has been denominated in U.S. Dollars.

At Cannon Trading we help you trade crude oil at some of the best day trading margin rates. Our brokers will do their best to keep you aware of the market happenings to help you exercise call and put options carefully. In order to get more information on crude oil and commodities, read this category archive blog. Please feel free to share this information.

Crude Oil Futures: Trading, Grades, Production, and Cannon Trading Company

Posted on by Cannon Operations

Read more about trading Crude Oil Futures with Cannon Trading Company here.

Crude oil futures are among the most actively traded derivatives in the world, serving as a vital instrument for speculators, hedgers, and investors. These futures contracts are based on the price of crude oil, a fundamental commodity that powers industries, fuels vehicles, and serves as the lifeblood of the global economy. In this comprehensive guide, we will explore the types of oil grades traded worldwide, where crude oil futures are traded, their contract sizes, the top oil producers and exporters, notable exchanges trading crude oil futures, the role of oil tankers, products derived from crude oil, and why Cannon Trading Company is a top choice for trading crude oil futures, highlighted by their exceptional TrustPilot rating of 4.9 out of 5 stars.

Types of Oil Grades Traded Worldwide

Crude oil is not a uniform commodity; it comes in various grades that vary in composition, density, and sulfur content. The two primary categories of crude oil are:

  1. Sweet Crude: Sweet crude oil has a low sulfur content and is less dense. It is easier and less costly to efine, making it desirable for producing gasoline and other high-value products. Examples include Brent crude (North Sea) and West Texas Intermediate (WTI).
  2. Sour Crude: Sour crude oil has a higher sulfur content, which makes it more challenging and expensive to refine. It is typically used to produce diesel fuel and other lower-value products. Examples include Dubai crude and Canadian Heavy Crude.

Where Crude Oil Futures Are Traded

Crude oil futures are traded on various commodity exchanges worldwide. Some of the prominent exchanges for trading crude oil futures include:

  1. Chicago Mercantile Exchange (CME): The CME offers West Texas Intermediate (WTI) crude oil futures, one of the most widely followed benchmarks for oil prices in the United States.
  2. Intercontinental Exchange (ICE): ICE offers Brent crude oil futures, which serve as a key benchmark for global oil prices, especially in Europe and Asia.
  3. Dubai Mercantile Exchange (DME): The DME provides futures contracts based on Oman crude oil, primarily catering to the Middle East markets.
  4. Multi Commodity Exchange (MCX): MCX, based in India, offers futures contracts on crude oil, allowing investors and traders to access the Indian energy market.

Contract Sizes for Crude Oil Futures

The contract sizes for crude oil futures can vary depending on the exchange and grade of oil being traded. However, two of the most commonly traded crude oil futures contracts are:

  1. NYMEX WTI Crude Oil Futures: Each NYMEX WTI crude oil futures contract represents 1,000 barrels of West Texas Intermediate crude oil.
  2. ICE Brent Crude Oil Futures: Each ICE Brent crude oil futures contract represents 1,000 barrels of North Sea Brent crude oil.

Top Oil Producers Around the World

Oil production is a critical component of many countries’ economies. Some of the top oil producers globally include:

  1. United States: The United States has emerged as a major oil producer, driven by shale oil production in states like Texas and North Dakota.
  2. Saudi Arabia: Saudi Arabia has long been a leading oil producer and a key member of the Organization of the Petroleum Exporting Countries (OPEC).
  3. Russia: Russia is a significant oil producer, often competing with Saudi Arabia for the title of the world’s largest oil producer.
  4. Canada: Canada is known for its vast reserves of oil sands, making it a prominent player in the global oil industry.
  5. China: China has experienced rapid growth in oil production, driven by increased domestic demand.

Top Oil Exporters Around the World

While oil production is vital, exporting crude oil to global markets is equally important. Some of the top oil-exporting countries include:

  1. Saudi Arabia: Saudi Arabia is a major exporter and a key player in influencing global oil prices.
  2. Russia: Russia exports significant quantities of oil, particularly to Europe and Asia.
  3. United States: The U.S. has become a net exporter of oil, shipping crude oil to various countries worldwide.
  4. Iraq: Iraq is a major exporter of crude oil, primarily to Asia and Europe.
  5. Canada: Canada exports crude oil to the United States and is a key supplier to its southern neighbor.

Top Exchanges Trading Crude Oil Futures

Several exchanges worldwide facilitate the trading of crude oil futures contracts. Some of the most prominent ones include:

  1. Chicago Mercantile Exchange (CME): The CME Group offers futures contracts on West Texas Intermediate (WTI) crude oil, providing a vital benchmark for U.S. oil prices.
  2. Intercontinental Exchange (ICE): ICE offers futures contracts on Brent crude oil, which serves as a global benchmark for oil prices.
  3. Dubai Mercantile Exchange (DME):The DME is a leading exchange for Middle East crude oil futures, particularly Oman crude.
  4. Multi Commodity Exchange (MCX): MCX is India’s premier commodity exchange, offering futures contracts on crude oil and other commodities.

Role of Oil Tankers

Oil tankers play a pivotal role in the transportation of crude oil from producing regions to consuming markets. These massive vessels are designed to carry large quantities of crude oil and petroleum products. The two main types of oil tankers are:

  1. Crude Oil Tankers: These tankers are specially designed for the transportation of unrefined crude oil from oil fields to refineries. They come in various sizes, including Very Large Crude Carriers (VLCCs) and Ultra Large Crude Carriers (ULCCs).
  2. Product Tankers: Product tankers transport refined petroleum products such as gasoline, diesel, and jet fuel from refineries to distribution points and end consumers. They are smaller in size compared to crude oil tankers.

Products and Byproducts Made from Crude Oil

Crude oil is a versatile raw material that is processed in refineries to produce a wide range of products and byproducts. Some of the primary products derived from crude oil include:

  1. Gasoline: Gasoline is a vital fuel used in automobiles and other forms of transportation.
  2. Diesel: Diesel fuel powers trucks, buses, and many industrial vehicles.
  3. Jet Fuel: Jet fuel is used in aviation for commercial and military aircraft.
  4. Heating Oil: Heating oil is used for heating homes and buildings in colder climates.
  5. Petrochemicals: Crude oil is a source of various petrochemicals used to produce plastics, synthetic rubber, and chemicals for various industries.
  6. Lubricants: Crude oil is refined to produce lubricating oils for machinery, engines, and equipment.
  7. Asphalt: Asphalt is used in road construction and for roofing materials.
  8. Naphtha: Naphtha is a feedstock for the production of chemicals and as a component in gasoline blending.

Why Cannon Trading Company Is a Good Choice for Trading Crude Oil Futures

Cannon Trading Company is a trusted name in the world of futures and commodities trading, including the trading of crude oil futures. Here’s why they are an excellent choice:

  1. Expertise and Experience: With decades of experience, Cannon Trading has a team of knowledgeable brokers and professionals who specialize in energy futures, including crude oil.
  2. Multiple Trading Platforms: Cannon Trading offers a range of advanced trading platforms, ensuring that traders have access to the latest technology and tools.
  3. Personalized Service: The broker is known for its personalized approach, understanding each client’s unique trading goals and providing tailored solutions and guidance.
  4. Competitive Pricing: Cannon Trading offers competitive commission rates, helping traders manage their trading costs efficiently, which is crucial for energy futures traders.
  5. Educational Resources: Cannon Trading provides a wealth of educational resources, including webinars, market analysis, and trading guides, empowering traders to enhance their skills and make informed decisions.
  6. Regulation and Security: As a member of the National Futures Association (NFA) and the Commodity Futures Trading Commission (CFTC), Cannon Trading adheres to strict industry regulations, ensuring a secure trading environment for clients.

Elaborating on the TrustPilot Rating of 4.9 out of 5 Stars

Cannon Trading Company’s exceptional TrustPilot rating of 4.9 out of 5 stars underscores the broker’s commitment to customer satisfaction and the quality of its services. This rating reflects the positive experiences of clients who have benefited from Cannon Trading’s expertise, personalized support, competitive pricing, educational resources, and adherence to regulatory standards. The high rating is a testament to Cannon Trading’s reputation for excellence in the world of futures trading, including the trading of crude oil futures.

Crude oil futures are a fundamental component of the global energy market, providing traders, investors, and hedgers with exposure to the price of crude oil, a vital commodity with wide-ranging applications. Understanding the various grades of crude oil, where futures are traded, contract sizes, top oil producers and exporters, exchanges trading crude oil futures, the role of oil tankers, and the products derived from crude oil is essential for anyone interested in this dynamic market.

Cannon Trading Company stands out as a top choice for trading crude oil futures, offering a wealth of experience, personalized service, advanced trading platforms, competitive pricing, educational resources, and a strong commitment to regulatory compliance. Their impressive TrustPilot rating of 4.9 out of 5 stars attests to their dedication to client satisfaction and their status as a trusted partner in the world of futures trading. Whether you are an experienced trader or just starting, Cannon Trading can provide the support and resources needed to navigate the complexities of crude oil futures trading effectively.

Ready to start trading futures? Call 1(800)454-9572 and speak to one of our experienced, Series-3 licensed futures brokers and start your futures trading journey with Cannon Trading Company today.

Disclaimer – Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.  Past performance is not indicative of future results. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

 

CPI tomorrow! + Levels for September 13th 2023

Posted on by Ilan
Get Real Time updates and more on our private FB group!

What you need to know before trading futures on Sept. 13th:

  • Front month for stock index futures is December!
  • Highly anticipated CPI report is tomorrow
  • Crude oil numbers are out tomorrow as the energy sector broke out to the upside in a strong way these past 2 weeks.
Rollover is here for stock indices. i.e., the E-mini and Micro S&P, Nasdaq, Dow Jones and Russell 2000. 

 

Volume in the September contracts will begin to drop off until their expiration Friday, September 15th (8:30 A.M., Central Time). At that point, trading in these contracts halts. Stock index futures are CASH SETTLED contracts. If you hold any September futures contracts through 8:30 A.M., Central Time on Friday, Sept. 15th, they will be offset with the cash settlement price, as set by the exchange.

 Monday, September 18th is Last Trading Day for September currency futures. It is of the utmost importance for currency traders to exit all September futures contracts by Friday, September 15th and to start trading the December futures. Currency futures are DELIVERABLE contracts.

The month code for December is ‘Z.’  Please consider carefully how you place orders when changing over.

Watch the video below on how to rollover your market depth and charts!

Rollover Futures contract on E-Futures platform

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.  You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time when it comes to Futures Trading.

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Futures Trading Levels

09-13-2023

#ES, #NQ, #YM, #RTY, #XBT, #GC, #SI, #CL, #ZB, #6E, #ZC, #ZW, #ZS, #ZM, #NG
#ES, #NQ, #YM, #RTY, #XBT, #GC, #SI, #CL, #ZB, #6E, #ZC, #ZW, #ZS, #ZM, #NG

Improve Your Trading Skills

Get access to proprietary indicators and trading methods, consult with an experienced broker
 1-800-454-9572 Explore trading methods. Register Here


Economic Reports, Source: 

Forexfactory.com

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This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading.

What You Need to Know if you are Trading Futures on Sept. 7th 2023

Posted on by Cannon Operations
Get Real Time updates and more on our private FB group!
What you need to know before trading futures tomorrow – September 7th 2023 ,

by Mark O’Brien, Senior Broker

General:

We’re a couple of weeks away from the next meeting of the Federal Reserve when Fed. chair Jerome Powell and fellow board members will determine where the Federal Funds Rate – the central bank’s key borrowing rate – should be set.

 

After raising rates eleven consecutive times ending in May, then holding off in June, the Central Bank raised interest rates by 25 basis points in July setting the borrowing rate at a range of 5.25% to 5.50% – the highest level at which Fed Funds have been set since 2001.

 

How does that compare to other countries’ central bank moves.  Here’s a table showing the moves made over the last two years by nine others compared to the United States’.
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General, cont.

 

Keep an eye out for markets trading near multi-month or multi-year extremes for the future price moves.

 

→  At ±27 cents / pound sugar (March) is trading near 11-year highs.

 

→  At ±$3,650 / ton cocoa (Dec.) is trading near 12-year highs.

 

→  Trading below $1.50 / lb. coffee is trading near 2-year lows.

 

→  Almost this entire calendar year, natural gas has been floating between 2.50 and 2.00 / million BTU’s just above all-time lows below $2.00 posted in June 2020.

 

Energy:

Prospects of the U.S. economy avoiding a hard recession have helped lift oil demand and prices in recent months.  Then traders took in last week’s report that voluntary cuts to world crude oil supplies by Russia and Saudi Arabia would be extended from September to year’s end – with the pronouncement that other OPEC+ countries may follow suit.  That sent crude oil futures prices on a renewed upward pace with the October contract breaching $88.00 per barrel intraday yesterday and today- hitting 10-month highs.  Alongside the West Texas Intermediate contract, Nov. Brent Crude oil futures traded on ICE Europe topped $90.00 per barrel.

 

Heads up:

Crude oil numbers are OUT tomorrow, 11 Am Eastern time.

Plan your trade and trade your plan

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Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.  You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time when it comes to Futures Trading.

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Futures Trading Levels

09-07-2023

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Improve Your Trading Skills

Get access to proprietary indicators and trading methods, consult with an experienced broker
 1-800-454-9572 Explore trading methods. Register Here


Economic Reports, Source: 

Forexfactory.com

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This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading.

What You Need to Know if you are Trading Futures on Sept. 6th 2023

Posted on by Ilan
Get Real Time updates and more on our private FB group!

What you need to know before trading futures tomorrow – September 6th 2023

by Ilan Levy-Mayer, VP

  1. ISM PMI is out tomorrow.
  2. Crude oil numbers will NOT be out tomorrow like normally do, due to the Labor Day weekend, these numbers will be released Thursday 30 minutes after the natural gas numbers.
  3. Crude oil broke up to the upside as well as Sugar. Corn and wheat broke to the downside.
  4. Most of the last few sessions in stock index futures have been extremely choppy. This will sometimes happen ahead of a strong breakout….the million $ question is which way…..

 

Plan your trade and trade your plan

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Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.  You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time when it comes to Futures Trading.

3b644da2 2bee 4d39 8d98 5208a20bec39

Futures Trading Levels

09-06-2023

#ES, #NQ, #YM, #RTY, #XBT, #GC, #SI, #CL, #ZB, #6E, #ZC, #ZW, #ZS, #ZM, #NG
#ES, #NQ, #YM, #RTY, #XBT, #GC, #SI, #CL, #ZB, #6E, #ZC, #ZW, #ZS, #ZM, #NG

Improve Your Trading Skills

Get access to proprietary indicators and trading methods, consult with an experienced broker
 1-800-454-9572 Explore trading methods. Register Here


Economic Reports, Source: 

Forexfactory.com

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This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading.

What You Need to Know if you are Trading Futures on Aug 30th 2023

Posted on by Ilan
Get Real Time updates and more on our private FB group!

What you need to know before trading futures tomorrow – Aug 30th 2023

by Ilan Levy-Mayer, VP

  1. Front month for treasuries, silver, copper is now December.
  2. We have another employment report tomorrow morning, ADP
  3. Crude oil numbers are out tomorrow if you are an energy trader.
  4. Pending home sales will be out as well
  5. SP500 futures closed right against MAJOR moving average/resistance level. (chart below)
  6. Both Sugar, Silver and Heating oil markets flashed a possible long signal based on our proprietary indicators.
  7. Thursday will be the last trading day for August as well as Q3!
  8. Friday we will have the anticipated NFP ( non farm payrolls report)
  9. Labor day is almost here, see modified trading schedule HERE

 

Plan your trade and trade your plan.

 

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Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.  You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time when it comes to Futures Trading.

3b644da2 2bee 4d39 8d98 5208a20bec39

Futures Trading Levels

08-30-2023

#ES, #NQ, #YM, #RTY, #XBT, #GC, #SI, #CL, #ZB, #6E, #ZC, #ZW, #ZS, #ZM, #NG
#ES, #NQ, #YM, #RTY, #XBT, #GC, #SI, #CL, #ZB, #6E, #ZC, #ZW, #ZS, #ZM, #NG

 

 

Improve Your Trading Skills

Get access to proprietary indicators and trading methods, consult with an experienced broker
 1-800-454-9572 Explore trading methods. Register Here


Economic Reports, Source: 

Forexfactory.com

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This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading.

Navigating the World of Crude Oil Futures: Production, Exchanges, Brokers, and Hedging

Posted on by Cannon Operations

Find out more about trading futures options with Cannon Trading Company here.

Crude oil, often referred to as the lifeblood of modern economies, plays a pivotal role in energy production, transportation, and global geopolitics. As a finite and highly sought-after resource, trading crude oil futures offers investors and businesses a way to manage risk, speculate on price movements, and participate in the energy market. In this comprehensive exploration, we will delve into the types of crude oil, major oil-producing regions, top oil producers, global oil futures exchanges, the role of crude oil brokers, and the art of hedging crude oil through futures trading. Additionally, we will take a closer look at Cannon Trading Futures Brokers and their exceptional TrustPilot rating.

Types of Crude Oil and Geographic Areas
Crude oil is not a uniform commodity; it comes in various grades and qualities, each with distinct characteristics. The most commonly traded types of crude oil include Brent crude, West Texas Intermediate (WTI) crude, and Dubai crude, among others. These grades differ in terms of density, sulfur content, and location of production.

Geographically, crude oil is found in multiple regions around the world. Notable areas of crude oil production include:

  1. Middle East: The Middle East is renowned for its vast oil reserves, with countries like Saudi Arabia, Iraq, and Iran being major producers. The region’s influence on global oil prices and supply dynamics is significant.
  2. North America: The United States and Canada are prominent producers of crude oil, with the shale revolution in the U.S. leading to a surge in production in recent years.
  3. Russia and Former Soviet Union: Russia has substantial oil reserves and is a key player in the global oil market. Other countries in the former Soviet Union, such as Kazakhstan and Azerbaijan, also contribute to production.
  4. Latin America: Countries like Venezuela and Brazil are significant producers in the Latin American region, contributing to global supply.
  5. Africa: Countries like Nigeria, Angola, and Libya are noteworthy crude oil producers in Africa, with varying degrees of geopolitical influence on supply.

Top Oil Producers in the World
The hierarchy of top oil producers shifts based on global economic and political dynamics. As of my last knowledge update in September 2021, some of the top oil-producing countries included Saudi Arabia, the United States, Russia, and China. These countries not only influence the supply side but also impact global demand and pricing trends.

Global Oil Futures Exchanges and Brokers
Oil futures are traded on several prominent exchanges around the world, providing investors and traders with a platform to speculate on the future price of crude oil. Some of the well-known oil futures exchanges include:

  1. New York Mercantile Exchange (NYMEX): NYMEX, a division of the CME Group, offers futures contracts for WTI crude oil. WTI is considered a benchmark for oil prices in North America.
  2. Intercontinental Exchange (ICE): ICE offers Brent crude oil futures contracts, which serve as a global benchmark for oil prices. Brent crude is sourced from the North Sea and represents a major component of the international oil market.
  3. Dubai Mercantile Exchange (DME):DME provides a platform for trading Dubai crude oil futures contracts, which cater to the Asian market.

Hedging Crude Oil on the Futures Market
Hedging in the context of crude oil futures involves using futures contracts to mitigate the risk of adverse price movements. This strategy is commonly employed by oil producers, consumers, and investors who wish to protect themselves from the volatility of oil prices.

For instance, an oil producer concerned about a potential decline in oil prices could enter into futures contracts to sell oil at a predetermined price. If prices fall, the loss on the physical oil sale could be offset by gains in the futures contract. Similarly, airlines or other businesses heavily reliant on oil for operations could use futures contracts to lock in prices and safeguard against unexpected price spikes.

Cannon Trading Futures Brokers and TrustPilot Rating
Cannon Trading, a well-established futures broker, offers traders access to a range of commodities, including crude oil futures. With over three decades of experience in the industry, Cannon Trading has earned a reputation for its commitment to providing traders with advanced tools, competitive pricing, and reliable execution.

One valuable indicator of a broker’s performance is customer feedback, and Cannon Trading’s exceptional rating on TrustPilot speaks to its dedication to client satisfaction. TrustPilot, a platform for customer reviews, showcases positive experiences shared by traders who have engaged with Cannon Trading. These reviews often highlight factors such as efficient customer support, user-friendly platforms, and seamless order execution, all of which are critical in the world of futures trading.

Crude oil futures offer a pathway for investors, producers, and consumers to engage with the energy market, manage risk, and capitalize on price movements. The diverse types of crude oil and their global geographic locations contribute to the dynamic nature of the oil market. As top oil producers shift and demand evolves, the role of oil futures exchanges, brokers, and hedging strategies remains integral to the functioning of this essential global commodity market. Cannon Trading Futures Brokers, exemplified by their TrustPilot rating, underscores the significance of reliable brokerage services in facilitating successful crude oil futures trading.

Trading Crude Oil Futures: Strategies, Techniques, and Considerations

Posted on by Cannon Operations

Learn more about trading crude oil futures with Cannon Trading Company here.

Trading crude oil futures is a dynamic and potentially lucrative endeavor that requires a deep understanding of the energy markets, technical analysis, risk management, and trading strategies. In this comprehensive guide, we will delve into the world of crude oil futures trading, focusing on a specific type of crude oil, discussing relevant exchanges, exploring day trading techniques for futures, and touching on techniques for trading crude oil options on futures. Additionally, we will highlight the services of Cannon Trading Company, known for their customer service excellence and high TrustPilot rating.

Understanding Crude Oil Futures Trading

Crude oil is a crucial global commodity that not only fuels economies but also presents trading opportunities for individuals and institutions. Crude oil futures contracts allow traders to speculate on the price movements of oil, whether they anticipate its price to rise (go long) or fall (go short). Futures contracts provide a standardized way to buy or sell a specific quantity of crude oil at a predetermined price on a future date.

Types of Crude Oil: When trading crude oil futures, it’s important to consider the different types of crude oil. West Texas Intermediate (WTI) and Brent crude are two of the most widely traded types. WTI is primarily produced in the United States and is known for its relatively low sulfur content. Brent crude, on the other hand, is sourced from the North Sea and is considered a global benchmark for oil prices.

Exchanges for Crude Oil Futures: Crude oil futures are traded on various exchanges around the world, with the New York Mercantile Exchange (NYMEX) and the Intercontinental Exchange (ICE) being two prominent ones. NYMEX offers WTI crude oil futures, while ICE provides Brent crude oil futures. These exchanges provide liquidity, price discovery, and a platform for traders to engage in both speculation and risk management.

Day Trading Techniques for Crude Oil Futures

Day trading involves opening and closing positions within the same trading day, capitalizing on short-term price movements. Trading crude oil futures using day trading techniques requires discipline, a solid strategy, and an understanding of market dynamics.

  1. Technical Analysis: Day traders often rely on technical analysis, using indicators such as moving averages, MACD, RSI, and candlestick patterns to identify entry and exit points. Price charts and patterns can provide insights into potential price movements.
  2. Volatility Analysis: Crude oil markets can be highly volatile, presenting both opportunities and risks. Traders can use tools like the Average True Range (ATR) to gauge volatility and adjust their position sizing and stop-loss levels accordingly.
  3. News and Events: Economic and geopolitical news can significantly impact oil prices. Day traders should stay informed about major events, such as OPEC meetings, inventory reports, and geopolitical tensions, to anticipate potential price swings.
  4. Scalping and Momentum Strategies: Scalping involves making quick trades to capture small price movements, while momentum strategies capitalize on trends. These techniques require quick decision-making and a keen understanding of price momentum.
  5. Risk Management: Effective risk management is crucial in day trading. Setting stop-loss orders, defining maximum loss thresholds, and managing position sizes can help traders protect their capital.

Trading Crude Oil Options on Futures

Options on futures provide traders with the right, but not the obligation, to buy or sell a futures contract at a specific price (strike price) on or before a certain date (expiration date). Trading crude oil options on futures allows for more flexibility and risk management.

  1. Hedging Strategies: Crude oil options can be used for hedging purposes, allowing producers and consumers to protect themselves against price fluctuations. For example, a crude oil producer can purchase put options to hedge against a potential price decline.
  2. Directional Strategies: Traders can also use options to speculate on the future price direction of crude oil. Buying call options can provide exposure to potential price increases, while buying put options can provide exposure to potential price decreases.
  3. Spread Strategies: Option spreads involve trading multiple options contracts simultaneously to capitalize on price differentials. Calendar spreads and vertical spreads are common strategies that can be used to take advantage of volatility or time decay.
  4. Implied Volatility Considerations: Implied volatility reflects the market’s expectation of future price volatility. Traders should be aware of implied volatility levels, as it can impact option prices. High implied volatility may make options more expensive.

Cannon Trading Company: Customer Service and TrustPilot Rating

Cannon Trading Company is a brokerage firm known for its services in facilitating various types of trading, including crude oil futures and options on futures. The company’s commitment to customer service plays a crucial role in assisting traders as they navigate the complexities of the commodities markets.

Customer Service Excellence: Cannon Trading Company prides itself on providing exceptional customer service. Their experienced brokers offer personalized assistance, market insights, and trading strategies to help clients make informed decisions.

TrustPilot Rating: The company’s high TrustPilot rating of 4.9 out of 5 stars is a testament to its dedication to customer satisfaction. TrustPilot is a platform where customers can share their experiences with businesses. Such a high rating indicates that customers have found value in Cannon Trading Company’s services and have had positive interactions with their team.

Trading crude oil futures presents opportunities for both institutional and individual traders to capitalize on the volatility and price movements in the energy markets. Understanding the nuances of different crude oil types, utilizing relevant exchanges, and employing effective day trading techniques can help traders navigate this complex market. Moreover, trading options on crude oil futures offers additional strategies for risk management and speculation. As exemplified by Cannon Trading Company’s customer service and high TrustPilot rating, choosing the right brokerage partner can enhance the trading experience and provide valuable support to traders of all levels.

Ready to start trading futures? Call 1(800)454-9572 and speak to one of our experienced, Series-3 licensed futures brokers and start your futures trading journey with Cannon Trading Company today.

Disclaimer – Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.  Past performance is not indicative of future results. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

The Week Ahead for Commodities + Trading Levels for August 15th 2023

Posted on by Ilan
Get Real Time updates and more on our private FB group!

The Week Ahead

by Mark O’Brien, Senior Broker

General: 

 

As the duel between the United States and China continues, seemingly on several fronts, a new sign emerged the first half of the year: China’s imports to the U.S. accounted for the smallest percentage of goods arriving here in 20 years.  Just 13.3% of all imports to the U.S. came from China the first half of 2023.  Compare that to its peak of 21.6% for all of 2017 and its low point of 12.1% in 2013.  The downturn is not due to any list of stand-out products or industries, nor has any country or small number of countries jumped up to import a bigger share of anything.  Rather, slow-moving supply chain shifts across dozens of industries and nations are driving the trend.  When the dollar values of exports and imports are combined, Mexico is now America’s no. 1 trading partner, followed by Canada, pushing China to third place.

 

Last Thursday, the Labor Department reported the consumer-price index increased 0.2% in July, the same as in June. That is down sharply year-over-year looking at the 1.2% gain in June 2022.  If the downward trend continues – now over a year from its June 2022 peak reading of 9.1%, inflation is on a path to draw near the Federal Reserve’s 2% target by late 2023 or early 2024.

 

What could stand in the way of that trend?  Geopolitical events and weather could impact food and energy prices.

 

After Saudi Arabia and Russia announced reductions in their oil production last month, unleaded gas prices, which tend to lag behind crude oil prices, traded to 1-year highs on Friday (basis September) within less than two cents of $3.00 per gallon.

 

Further regarding Russia, last month it withdrew from a deal that allowed Ukraine to export grain through the Black Sea and has since attacked key port facilities in Odesa.  Ukraine is one of the world’s largest grain suppliers including 13% of global corn exports and the 12% of wheat.

 

Add to all this, scientists watching the periodic climate pattern called El Niño are now anticipating it arriving this winter more likely as “moderate,” and possibly a “strong” event than how they assessed conditions in May.  Ocean surface temperatures in the central Pacific Ocean have warmed enough off the coast of South America to trigger an El Niño, meaning possibly a warmer, dryer winter here in the U.S. and higher temperatures globally. This can cause disruptions to crops in some of the world’s most important commodities sources.

 

Keltner Channels, Volume Charts, Algo Signals – Trade Set Up

  • Watch the 5 minute video below in which I share a trading set up I like, using volume charts, candle sticks, Keltner Channels and proprietary ALGOs for trading signals.

Volume charts, candle sticks, Keltner Channels and proprietary ALGOs for trading signals.

 

 

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.  You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time when it comes to Futures Trading.

Futures Trading Levels

08-15-2023

#ES, #NQ, #YM, #RTY, #XBT, #GC, #SI, #CL, #ZB, #6E, #ZC, #ZW, #ZS, #ZM, #NG
#ES, #NQ, #YM, #RTY, #XBT, #GC, #SI, #CL, #ZB, #6E, #ZC, #ZW, #ZS, #ZM, #NG

Improve Your Trading Skills

Get access to proprietary indicators and trading methods, consult with an experienced broker
 1-800-454-9572 Explore trading methods. Register Here


Economic Reports, Source: 

Forexfactory.com

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This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading.

Weekly Newsletter: Trading Around Economic Reports + Levels for August 7th

Posted on by Ilan

Cannon Futures Weekly Newsletter Issue # 1157

 

Join our private Facebook group for additional insight into trading and the futures markets!

Have a safe Memorial Day Weekend. Trading Schedule HERE

In this issue:

  • Trading Resource of the Week – Trading Key Economic reports
  • Hot Market of the Week – September Crude Oil
  • Broker’s Trading System of the Week – NQ Day Trading System
  • Trading Levels for Next Week
  • Trading Reports for Next Week

 

  • Trading Resource of the Week – Trading Key Economic Reports

As a trader, you will come across many factors that you must consider before entering or exiting the markets. Some of the most important aspects to look for are economic events that can move the markets drastically one way or another.
There are many types of economic events including releases by a governing body, changes in sales or consumption of commodities, and increases in supply and demand. All of these can affect the markets you trade, making it important for you to know how and when these changes are happening.
  • What is GDP?
  • About the Retail Sales Report
  • What is NFP ( non farm payroll) Report?
  • Understanding US housing Data
  • FOMC
  • Understanding Oil Data Report
  • Importance of Consumer Confidence Survey

 

ACCESS THE COURSE NOW

Hot market of the week is provided by QT Market Center, A swiss army knife charting package that’s not just for Hedgers, Cooperatives and Farmers alike but also for Spread traders, Swing traders and shorter time frame application for intraday traders with a unique proprietary indicator that can be applied to your specific trading needs.
September Crude Oil completed it’s first upside PriceCount objective and had a brief break. At this point, if the market can maintain the bullish tone, the next upside PriceCount objective comes at 89.31
PriceCounts – Not about where we’ve been , but where we might be going next!
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The PriceCount study is a tool that can help to project the distance of a move in price. The counts are not intended to be an ‘exact’ science but rather offer a target area for the four objectives which are based off the first leg of a move with each subsequent count having a smaller percentage of being achieved. It is normal for the chart to react by correcting or consolidating at an objective and then either resuming its move or reversing trend. Best utilized in conjunction with other technical tools, PriceCounts offer one more way to analyze charts and help to manage your positions and risk. Learn more at www.qtchartoftheday.com
Trading in futures, options, securities, derivatives or OTC products entails significant risks which must be understood prior to trading and may not be appropriate for all investors. Past performance of actual trades or strategies is not necessarily indicative of future results.
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With algorithmic trading systems becoming more prevalent in portfolio diversification, the following system has been selected as the broker’s choice for this month.
PRODUCT
SYSTEM TYPE
Intraday
Recommended Cannon Trading Starting Capital
$30,000
COST
USD 255 / monthly
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The performance shown above is hypothetical in that the chart represents returns in a model account. The model account rises or falls by the average single contract profit and loss achieved by clients trading actual money pursuant to the listed system’s trading signals on the appropriate dates (client fills), or if no actual client profit or loss available – by the hypothetical single contract profit and loss of trades generated by the system’s trading signals on that day in real time (real‐time) less slippage, or if no real time profit or loss available – by the hypothetical single contract profit and loss of trades generated by running the system logic backwards on back adjusted data. Please read full disclaimer HERE.
Sign Up for a Free Personalized Consultation with a Broker from Cannon Trading Company
Questions about the markets? trading? platforms? technology? trading systems? Get answers with a complimentary, confidential consultation with a Cannon Trading Company series 3 broker.

  • Trading Levels for Next Week

Daily Levels for August 7th, 2022
#ES, #NQ, #YM, #RTY, #XBT, #GC, #SI, #CL, #ZB, #6E, #ZC, #ZW, #ZS, #ZM, #NG
#ES, #NQ, #YM, #RTY, #XBT, #GC, #SI, #CL, #ZB, #6E, #ZC, #ZW, #ZS, #ZM, #NG
Would you like to receive daily support & resistance levels?
Yes
S
No
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Weekly Levels

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  • Trading Reports for Next Week

First Notice (FN), Last trading (LT) Days for the Week: www.mrci.com 
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This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts herein contained are derived from sources believed to be reliable but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgment in trading.

 

Good Trading!
Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Rest of the Trading Week: What to Watch Out For + Trading Levels for August 3rd 2023

Posted on by Ilan
Get Real Time updates and more on our private FB group!

Rest of the Trading Week, by Mark O’Brien, Senior Broker

General:

 

The answer is: Germany, Denmark, Netherlands, Sweden, Norway, Switzerland, Luxembourg, Singapore and Australia.

The question is: name the remaining countries whose credit is rated AAA by all three ratings companies – S&P Global, Fitch and Moody’s – after Fitch downgraded the United States’ debt rating from its top-tier AAA, down to AA+.

 

Among the contributing factors leading to the downgrade, Fitch cited, “the expected fiscal deterioration over the next three years, a high and growing general government debt burden, and the erosion of governance . . . that has manifested in repeated debt limit standoffs and last-minute resolutions.”

 

Remember in 2011, even though at that time a debt-limit deal was reached, S&P Global lowered the U.S.’s credit rating from AAA down to AA+ and it has not recovered since.

 

Canada is rated AAA by two of the ratings companies.

 

Stock Indexes:

 

Probably not surprisingly, as of this typing, stock indexes reacted negatively to the ratings news with the E-mini Dow Jones losing more than 300 points, roughly a 2% haircut. The E-mini Nasdaq is off ±325 points, a similar 2% correction.

 

Energy:

 

As the stock market foundered, crude oil felt weak in the knees as well and by mid-session, the September contract had sold off $3.00 per barrel from its Sunday opening. This despite today’s EIA crude oil stocks report showing a 17 million barrel reduction in U.S. crude stocks; the largest drop in inventories since 1982.

 

Grains:

 

After trading within 13 cents of its April 2022 highs last week, November soybeans factored in an expected conga line of wet weather fronts moving broadly over the U.S. Midwest and sold off ±$1.00 down to ±$13.25/bushel, a $5,000 per contract move, the bulk of which comprised just three trading sessions. Estimates for this year’s crop are a virtual wild card given the approach of August, its most critical growing period, so expect volatile price movement throughout.

 

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.  You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time when it comes to Futures Trading.

Futures Trading Levels

08-03-2023

#ES, #NQ, #YM, #RTY, #XBT, #GC, #SI, #CL, #ZB, #6E, #ZC, #ZW, #ZS, #ZM, #NG
#ES, #NQ, #YM, #RTY, #XBT, #GC, #SI, #CL, #ZB, #6E, #ZC, #ZW, #ZS, #ZM, #NG

Improve Your Trading Skills

Get access to proprietary indicators and trading methods, consult with an experienced broker
 1-800-454-9572 Explore trading methods. Register Here


Economic Reports, Source: 

Forexfactory.com

3d697f7b c0af 4f39 8307 1e6cba2d59e7

 

This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading.

RISK DISCLOSURE: Past results are not necessarily indicative of future results. The risk of loss in futures trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.