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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.

Trading Levels for July 13th – PPI and the Bigger Picture

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

Bigger Picture

By Mark O’Brien, Senior Broker

 

Taking a look at a relatively bigger picture of the world’s growth – or lack thereof – below you’ll find a list of natural resource commodities and their performance over the first half of the year.

The list is certainly metals-centric and no softs (cocoa, sugar, cotton, coffee, orange juice) or livestock were included.  Nevertheless, it illustrates the broad theme of the global economy, in which the world’s leading demand engine – China – has experienced at best a sputtering recovery after nearly three years of pandemic-related falloff.

Notice just two: lithium and gold were the only ones heading into the second half of 2023 with positive returns.

Noteworthy is gold’s hold on to positive returns attributable to the relatively stable U.S. dollar and steady demand by the world’s central banks, which is likely to persist as long as the risk of recession remains for the big players – China, Europe and the U.S. – and high-quality, liquid assets remain desirable.  Compare gold to crude oil, which despite output cuts by OPEC+ countries and forecasts for demand to continue outpacing supply into 2024, has stayed negatively impacted by stalled economies.

 

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Plan your trade and trade your plan.

 

Watch video below on ways to project exits on trades.

Projecting possible targets when trading futures

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

for 07-13-2023

#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

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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.

Important Reports Tomorrow, Trading Competition + Levels for July 6th

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

Bullet Points, Highlights, Announcements

By Mark O’Brien, Senior Broker

 

General: it’s that time of the month again: we’re a couple of days from when the Labor Dept. releases its monthly Non-farm payrolls report. It’s widely considered to be one of the most important and influential measures of the U.S. economy and the report is released at 7:30 A.M., Central Time on the first Friday of the month.

To review, the Labor Dept.’s Bureau of Labor Statistics surveys about 141,000 businesses and government agencies, representing approximately 486,000 individual work sites. The report excludes farm workers, private household employees, domestic household workers and non-profit organization employees. The report also includes other detailed industry data including the overall unemployment rate as a percentage of the total labor force that is unemployed but actively seeking work, wages, wage growth and average workday hours.

 

Energy: West Texas crude oil futures (basis Aug.) is trading up ±$2.50/barrel / ±3% today near $72/barrel on the heels of joint Saudi Arabia / Russia announcements of supply cuts. The former announced it would extend its voluntary output cut of 1 million barrels per day out to August. Russia committed to lowering its August output and export levels by 500,000 barrels per day. Typically, the Fourth of July holiday marks the peak of the U.S. travel season.

Equity Index Futures Trading Challenge

Sign up for the Cannon Trading via clearing partner StoneX + CME Group Equity Index Futures Trading Challenge for your chance to sizzle the competition this summer – Trade Micro, E-mini, and Standard size contracts on the S&P, NASDAQ, Russell, and Dow Jones in a risk-free environment while competing with fe11ow traders for a cash prize•.

Use the Cannon Futures Trader Simulated Trading Environment and a virtual account of $100,000 to trade CME Group Equity Index futures. Increase your balance as much as possible between July 9th and July 21st for your chance to win!

 

Duration

Start date: July 9th 2023

End date: July 21st 2023

Prizes

1st Place: $1200

2nd Place: $850

3rd Place: $450

Sign up NOW

 

 

Plan your trade and trade your plan.

 

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

for 07-06-2023

#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

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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.

Major Commodity Exchanges for Crude Oil and Oil Futures Trading

Posted on by Cannon Operations

Find out more about trade crude oil futures here.

Commodity exchanges play a crucial role in facilitating the trading of various commodities, including crude oil and oil futures. These exchanges provide a platform for buyers and sellers to engage in transactions, hedge risks, and determine the prices of commodities. Several major commodity exchanges around the world are known for their active trading of crude oil and oil futures. Let’s explore some of these exchanges, their geographic locations, the types of crude oils traded, and the top five producers of crude oil globally.

    1. New York Mercantile Exchange (NYMEX) – United States: The New York Mercantile Exchange, located in New York City, is one of the world’s largest and most influential commodity exchanges. NYMEX offers an array of energy futures contracts, including the West Texas Intermediate (WTI) crude oil futures, which are considered the benchmark for oil pricing in the United States. WTI crude oil is a light, sweet crude oil known for its low sulfur content.
      • Overview of NYMEX Crude Oil Futures: NYMEX Crude Oil Futures represent a contract to buy or sell a specific quantity of WTI crude oil at a predetermined price and delivery date in the future. The contract size for NYMEX Crude Oil Futures is 1,000 barrels of oil. The pricing of these futures contracts is based on the price of WTI crude oil, which is a benchmark for oil prices in the United States and serves as a reference for global oil markets.
      • Speculation: NYMEX Crude Oil Futures attract speculative traders who aim to profit from short-term price movements. These traders analyze various factors such as supply and demand fundamentals, geopolitical events, and economic indicators to make informed trading decisions. Speculative trading adds liquidity to the market and contributes to efficient price discovery.
    2. Intercontinental Exchange (ICE) – United Kingdom: The Intercontinental Exchange, based in London, operates the ICE Futures Europe, where a significant volume of crude oil and oil futures contracts are traded. The Brent crude oil futures, the most widely recognized benchmark for oil pricing worldwide, are traded on this exchange. Brent crude oil is sourced from the North Sea and is known for its higher sulfur content compared to WTI.
    3. Intercontinental Exchange (ICE) – United Kingdom: The Intercontinental Exchange, based in London, operates the ICE Futures Europe, where a significant volume of crude oil and oil futures contracts are traded. The Brent crude oil futures, the most widely recognized benchmark for oil pricing worldwide, are traded on this exchange. Brent crude oil is sourced from the North Sea and is known for its higher sulfur content compared to WTI.
      • Importance of INE Crude Oil Futures: INE Crude Oil Futures plays a crucial role in China’s efforts to enhance its energy market and strengthen its influence in the global oil market. As the world’s largest energy consumer, China’s demand for crude oil continues to rise. By establishing a domestic futures contract, China aims to gain more control over its oil pricing, reduce reliance on international benchmarks, and develop a pricing mechanism that better reflects regional supply and demand dynamics.
      • Contract Specifications: The INE Crude Oil Futures contract is denominated in Chinese Yuan (CNY) and trades on the INE. The contract size is 1,000 barrels of crude oil, with delivery months extending for the next 12 calendar months. The crude oil grade specified in the contract is medium sour crude oil, allowing market participants to trade a specific grade of oil that is relevant to the Chinese market.
    4. Dubai Mercantile Exchange (DME) – United Arab Emirates: The Dubai Mercantile Exchange, located in Dubai, facilitates the trading of various energy futures contracts, including the DME Oman Crude Oil Futures. The DME Oman contract serves as a benchmark for pricing Middle East crude oil exports to Asia. Oman crude oil is a medium sour crude known for its higher sulfur content.Contract Specifications: DME Crude Oil Futures represent the delivery of Dubai, Oman, or Upper Zakum crude oil. The contract specifications include the following:
      • Underlying Commodity: Dubai, Oman, or Upper Zakum crude oil
      • Contract Size: 1,000 barrels
      • Tick Size: $0.01 per barrel
      • Pricing Unit: U.S. Dollars per barrel
      • Contract Months: Up to 36 consecutive months
      • Trading Hours: Sunday to Thursday, 02:00 pm to 11:30 pm Gulf Standard Time (GMT+4)
      • Delivery Location: Fujairah, United Arab Emirates
    5. Multi Commodity Exchange (MCX) – India: The Multi Commodity Exchange, based in Mumbai, India, operates the MCX Crude Oil futures These contracts enable participants to trade Indian crude oil futures. The Indian crude oil basket comprises a mix of various crude oil types, including Brent, Dubai, and Omani crudes.
      • Contract Specifications: MCX Crude Oil Futures contracts have specific specifications that traders need to understand. The contract size for MCX Crude Oil Futures is typically 100 barrels, denominated in Indian Rupees (INR). The minimum price fluctuation, also known as the tick size, is INR 1 per barrel. This means that a price change of INR 1 per barrel results in a profit or loss of INR 100 per contract.
      • Factors Affecting MCX Crude Oil Futures Prices: Several factors impact the prices of MCX Crude Oil Futures. These include:
        1. Global Crude Oil Market: MCX Crude Oil Futures prices are influenced by international crude oil prices, particularly benchmark prices like Brent Crude or West Texas Intermediate (WTI). Supply and demand dynamics, geopolitical events, production cuts or increases by major oil-producing countries, and changes in global economic conditions all play a significant role in determining crude oil prices.
        2. Currency Exchange Rates: As MCX Crude Oil Futures are denominated in Indian Rupees, fluctuations in currency exchange rates, particularly the USD/INR exchange rate, can affect the prices of MCX Crude Oil Futures. A stronger Indian Rupee relative to the US Dollar can potentially lower the prices of MCX Crude Oil Futures and vice versa.
        3. Inventory Data: Inventory reports, such as the weekly crude oil inventory data released by the U.S. Energy Information Administration (EIA), can influence crude oil prices and subsequently impact MCX Crude Oil Futures. Changes in inventory levels, indicating either a build-up or drawdown of crude oil stocks, provide insights into supply-demand dynamics and can impact market sentiment.
        4. Macroeconomic Factors: Broader economic factors, such as GDP growth, inflation rates, and monetary policy decisions, can impact crude oil prices. Economic indicators that reflect the health of major oil-consuming nations, including India, can influence MCX Crude Oil Futures prices.

Ranking of the Top Five Producers of Crude Oil Worldwide:

  1. United States: The United States is the world’s largest producer of crude oil, thanks to its significant shale oil production. The country has experienced a surge in oil production in recent years, driven by advancements in extraction technologies such as hydraulic fracturing (fracking).
  2. Saudi Arabia: As the leading producer within the Organization of the Petroleum Exporting Countries (OPEC), Saudi Arabia holds substantial reserves and maintains a high level of crude oil production capacity. The country plays a crucial role in global oil markets and has a significant influence on oil prices.
  3. Russia: Russia has consistently been one of the top producers of crude oil It possesses vast oil reserves and operates expansive oil fields. Russian oil production is a vital component of the country’s economy, contributing significantly to its export revenues.
  4. Canada: Canada is renowned for its vast oil sands reserves, particularly in the province of Alberta. The extraction and production of oil from these unconventional sources have propelled Canada into the ranks of the world’s major crude oil
  5. Iraq: Iraq holds significant oil reserves, making it one of the top producers globally. Despite facing geopolitical challenges, the country has managed to sustain and increase its oil production, contributing substantially to the global crude oil supply.

Major commodity exchanges worldwide facilitate the trading of crude oil and oil futures contracts, providing a platform for market participants to engage in transactions and manage price risks. Geographic locations such as the United States, the United Kingdom, China, the United Arab Emirates, and India are home to prominent exchanges where various types of crude oils are traded. Additionally, the top five producers of crude oil globally include the United States, Saudi Arabia, Russia, Canada, and Iraq, with each country playing a significant role in shaping the global oil market.

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.

Trading Competition! Win REAL Cash + 4th of July Trading Hours

Posted on by Ilan
Get Real Time updates and more on our private FB group!
4th of July is around the corner! Make sure you are aware of the modified trading hours.

Bullet Points, Highlights, Announcements

By Mark O’Brien, Senior Broker

 

General (agriculture): 

 

The U.S. is well into summertime and with it agricultural futures, particularly field crops like corn, wheat and soybeans have gained in stature as already-planted crops are growing and developing toward their fall harvest.  At the same time, corn, wheat and soybean futures contracts have seen seasonal and meaningful increases in trade volume.  Along side this development, this year has seen noteworthy volatility in price movement.  To provide some perspective on this year’s U.S. crop season is the futures exchange where these agricultural products’ futures contracts are traded: CME Group.  While its exchanges make up the world’s largest operator of financial derivatives, it’s also an important source of futures research and education, with a collection of courses, lessons and webinars on trading, as well as a wealth of academic resources.  For example, take a look at their report on corn released this week entitled, “Vol is High by the Fourth of July.”  Get an understanding of how this crop year compares to other recent ones and what could be in store for prices.

 

More general (energy) 

 

Keep an eye on the third-smallest country on the continent and the second-least populated there.  It’s also one of the least densely populated countries on Earth (±10 people/mi²) with over 40% of its population living below the country’s poverty line.  Because ever since the discovery of a collection of astonishing and promising oil finds in recent years – estimated at over 11 billion barrels of oil reserves off its coast – Guyana in South America has become an enlivened player on the world stage.  With infrastructure investment dollars and know-how coming in from major energy players like Exxon Mobile, a formal invitation to join OPEC (so far, rebuffed), Guyana with a population of barely 800,000, has become the world’s fastest growing economy and is now ranked as having the fourth-highest GDP per capita in the Americas after the United States, Canada, and The Bahamas.

 

What level of attention have energy futures paid to the introduction of the largest addition to global oil reserves in the last 50 years?  The early answer is very little, but worthy of monitoring.  At ±360,000 barrels per day currently, Guyana barely moves the needle alongside the current ±90 million barrel-per day production globally.  Still, oil demand is expected to decline in the coming decades and OPEC’s influence over oil prices has regressed in recent years as non-OPEC countries like the U.S. Brazil, Guyana and Egypt have collectively impacted the global supply/demand dynamic.  This puts Guyana in a position to be an influential player as it works to increase production – with a planned 1 million barrels per day output by 2028.

Plan your trade and trade your plan. 

 

Equity Index Futures Trading Challenge

Sign up for the Cannon Trading via clearing partner StoneX + CME Group Equity Index Futures Trading Challenge for your chance to sizzle the competition this summer – Trade Micro, E-mini, and Standard size contracts on the S&P, NASDAQ, Russell, and Dow Jones in a risk-free environment while competing with fe11ow traders for a cash prize•.

Use the Cannon Futures Trader Simulated Trading Environment and a virtual account of $100,000 to trade CME Group Equity Index futures. Increase your balance as much as possible between July 9th and July 21st for your chance to win!

 

Duration

Start date: July 9th 2023

End date: July 21st 2023

Prizes

1st Place: $1200

2nd Place: $850

3rd Place: $450

Sign up NOW

 

 

 

 

 

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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.

Futures Trading Levels

for 06-29-2023

#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

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 1150: Projecting Targets, Juneteenth Hours + Levels for June 19th/20th

Posted on by Ilan

Cannon Futures Weekly Newsletter Issue # 1150

 

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:

  • Important Notices – Juneteenth Holiday Hours
  • Trading Resource of the Week – Trading 101 Video: Where are my Targets?
  • Hot Market of the Week – July Oats
  • Broker’s Trading System of the Week – NEW Crude Oil Trading System
  • Trading Levels for Next Week
  • Trading Reports for Next Week

 

    • Important Notices – Juneteenth Holiday Hours
    Monday, June 19, 2023 US bank will be closed in observance of Juneteenth. There will be no money transactions Wires, ACH, Internal transfer and or currency conversion.

 

Trading Resource of the Week –

Projecting Possible Price targets
By Ilan Levy-Mayer, VP
Watch the video below to get an idea on how to use Fibonacci extensions along with candle sticks to project possible price targets.

 

Projecting possible targets when trading futures

Try a FREE demo of the platform used to show the charts in this educational article. The platform is FREE and has charts, news, DOM, T&S, Alerts, advanced order entry, options and MUCH MORE!

A Cannon broker will be able to assist, provide feedback and answer any questions.

 

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.
July Oats finally stabilized their slide last month and then activated upside PriceCount objectives on the correction higher. Chart is satisfied its first count to $3.81 where it would be normal to get a near-term reaction in a form of consolidation or corrective trade. If you can sustain for the strength from here, the second count would project the possible run to the $4.10 area
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
Crude Oil
SYSTEM TYPE
Intraday
Recommended Cannon Trading Starting Capital
$10,000
COST
USD 140 / 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 June 19th, 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
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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.

Oil Futures 101

Posted on by Cannon Operations

Crude Oil Futures

Learn more about oil futures here

Oil futures are contracts that allow traders to buy or sell a predetermined amount of crude oil at a predetermined price and date in the future. They are traded around the world on various exchanges, including the United States, Great Britain, and Asia. In this response, we will compare the different grades of crude oil futures traded around the world.

United States Crude Oil Futures

The most widely traded oil futures contract in the United States is the West Texas Intermediate (WTI) crude oil futures contract, which is traded on the New York Mercantile Exchange (NYMEX). WTI is a high-quality, light, sweet crude oil that is produced in the United States. It is a benchmark crude oil that is used to price other crude oil grades around the world. WTI futures contracts are deliverable in 1000 Barrel Increments per contract.

Great Britain Crude Oil Futures

In Great Britain, the most widely traded crude oil futures contract is the Brent crude oil futures contract, which is traded on the Intercontinental Exchange (ICE). Brent is a light, sweet crude oil that is produced in the North Sea. It is also a benchmark crude oil that is used to price other crude oil grades around the world. Brent futures contracts are physically deliverable with an option to be settled in cash, with the settlement price based on the average price of trades during the last trading day.

Asia Crude Oil Futures

In Asia, there are several crude oil futures contracts traded on various exchanges. The most widely traded contracts are the Dubai Crude Oil Futures contract, traded on the Dubai Mercantile Exchange (DME), and the Oman Crude Oil Futures contract, traded on the Dubai Mercantile Exchange (DME) and the Intercontinental Exchange (ICE). Dubai and Oman crude oils are medium to heavy crude oils that are produced in the Middle East. They are primarily used in Asian refineries and are priced relative to the Brent and WTI crude oil benchmarks.

Other Crude Oil Futures Grades

There are many other crude oil grades that are traded around the world, including:

  1. Mars – a heavy, sour crude oil produced in the Gulf of Mexico.
  2. Bonny Light – a light, sweet crude oil produced in Nigeria.
  3. Tapis – a light, sweet crude oil produced in Malaysia.
  4. Es Sider – a light, sweet crude oil produced in Libya.
  5. Basrah Light – a light, sweet crude oil produced in Iraq.

Each of these crude oil grades has different characteristics, such as API gravity, sulfur content, and viscosity, which make them more or less suitable for different refining processes. As a result, they are priced differently relative to benchmark crude oils such as WTI and Brent.

Oil futures are an important financial instrument that allow traders to speculate on the price of crude oil and manage their exposure to price fluctuations. They are traded around the world on various exchanges, with different crude oil grades serving as benchmarks for pricing. The most widely traded crude oil futures contracts are the WTI crude oil futures contract in the United States, the Brent crude oil futures contract in Great Britain, and the Dubai and Oman crude oil futures contracts in Asia. Other crude oil grades, such as Mars, Bonny Light, Tapis, Es Sider, and Basrah Light, are also traded around the world and priced relative to benchmark crude oils. Understanding the differences between these crude oil grades and their benchmark pricing is important for traders looking to invest in oil futures.

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.

Win 1 oz Gold Bar + Trading Levels for 5.17.23

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

Are you ready to go for gold?

 

Then here is your golden opportunity. CME Group will be launching the Go for Gold Precious Metals Trading Challenge coming this June.

 

You’ll have the opportunity to practice trading highly liquid Precious Metals products while competing against other traders for the chance to win the grand prize of a 1 oz. bar of gold*.

 

During the challenge, you’ll explore our suite of precious metals contracts and test-drive strategies in a simulated environment. We’ll send you exclusive, daily education materials on precious metals contracts in order for you to feel prepared to trade and confidently compete against your peers.

 

Get ready to strike gold.

 

*Participants will only be eligible to receive a 1 oz. gold bar if permitted in accordance with the applicable laws of their jurisdiction.

START DATE: June 4, 2023

 

END DATE: June 9, 2023

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Plan your trade and trade your plan. 

 

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

for 05-17-2023

trading levels futures and commodities

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.

PPI Tomorrow and the Last 2 Trading Days of the Week Review

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

Last Two Trading Days of the Week:

By Mark O’Brien, Senior Broker

 

General:

 

Despite the fireworks frequently on display from stock index futures immediately preceding the release of the Consumer Price Index report over the last several months, an interesting result followed. In each of the last five releases, the S&P 500 closed within 0.5% of the prior day’s settlement. This is in stark contrast to some of the reports last year, notably November’s CPI release that sent the Nasdaq up ±7%.

 

On the heels of today’s CPI release indexes are looking to finish up with a similar outcome. This morning’s report showed consumer prices up 4.9% from last year, yet it marked the tenth consecutive month the inflation gauge slowed – now down from its peak of 9.1% last June, but still well north of the Federal Reserve’s 2% target.

 

Next up tomorrow at 7:30 A.M., Central Time, the Bureau of Labor Statistics releases its latest reading on prices at the wholesale level: its Producer Price Index.

 

Markets:

 

Metals: After piercing last month’s highs and touching $2,085 / ounce intraday last Thursday, June gold has consolidated somewhat, not too scared or encouraged by today’s inflation report – and not ready to anticipate the Fed.’s next move.

 

July copper sold off ±5 cents today and for the fifth time in the last ten trading sessions has tested 5-month lows near $3.82 / pound. This on the heels of languid economic reading from the world’s largest commodities consumer: China.

 

Energies: The negative sentiment from China dragged crude oil below its 5-6-month intraday low of March 20th at $64.58 per barrel, trading intraday last Thursday to $63.64 per barrel, a ±$20-per-barrel / $20,000 per contract skid from its mid-April ascendance to ±$83 per barrel. Given crude oil’s seemingly continual fixation with the events of the day – whatever they are – volatility remains – and the market has bounced ±$10 per barrel in barely four trading sessions.

 

Plan your trade and trade your plan. 

 

af43c241 87fd 492f 9e5b c409cce23ae1

 

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

for 05-11-2023

#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

3b644da2 2bee 4d39 8d98 5208a20bec39

Economic Reports, Source: 

Forexfactory.com

 

3fbba9ff a667 4fe8 b69b 1552196e99bd

 

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.

Trading Techniques for Oil Futures

Posted on by Cannon Operations

oil futures

Learn more about crude oil futures here.

Oil futures are a type of financial contract that allows traders to speculate on the future price of crude oil. Trading oil futures can be an effective way to capitalize on the volatility of oil prices, but it requires a comprehensive understanding of the market and the techniques that can be used to make informed trading decisions.

Here are some techniques that can be used to trade oil futures effectively:

  1. Technical Analysis: Technical analysis is a popular technique used in the trading of oil futures. It involves studying price charts to identify trends and patterns that can indicate potential trading opportunities. Technical analysts use a variety of tools such as moving averages, trend lines, and oscillators to help them identify potential entry and exit points for trades.
  2. Fundamental Analysis: Fundamental analysis is another technique used to trade oil futures. This technique involves studying the underlying economic factors that can impact the price of crude oil, such as supply and demand, geopolitical tensions, and weather patterns. By understanding these factors, traders can make more informed trading decisions based on the current and future outlook for oil prices.
  3. News Trading: News trading involves taking positions in oil futures based on breaking news events that can impact the oil market. For example, if there is a sudden supply disruption or political tensions in a major oil-producing country, the price of oil futures may rise rapidly. Traders who are able to react quickly to these events can potentially profit from these price movements.
  4. Scalping: Scalping is a short-term trading strategy that involves taking multiple small profits from quick trades. This technique can be effective for trading oil futures because of the market’s volatility. Traders who use scalping techniques often look for short-term price movements and take quick profits when they see them.
  5. Swing Trading: Swing trading is a technique that involves taking positions in oil futures based on longer-term price trends. This technique is often used by traders who are looking to capture larger price movements over a period of several days or weeks. Swing traders often use technical analysis to identify potential entry and exit points for trades.
  6. Position Trading: Position trading is a long-term trading technique that involves holding positions in oil futures for several months or even years. This technique is often used by traders who are looking to capitalize on major trends in the oil market. Position traders often use fundamental analysis to identify the underlying economic factors that can impact the price of oil futures over the long term.
  7. Options Trading: Options trading is another technique used to trade oil futures. This technique involves buying or selling options contracts that give the trader the right, but not the obligation, to buy or sell oil futures at a specified price at a future date. Options trading can be a complex technique, but it can be effective for managing risk and maximizing profits in the volatile oil market.
  8. Hedging: Hedging is a risk management technique that involves taking positions in oil futures to offset potential losses in other investments. For example, if a company relies on oil as a major input in its production process, it may choose to hedge its exposure to oil price fluctuations by taking positions in oil futures. Hedging can be an effective way to reduce risk in the volatile oil market.

Trading oil futures can be a challenging but potentially lucrative activity for traders who are willing to put in the effort to develop a comprehensive understanding of the market and the techniques that can be used to trade effectively. By using a combination of technical and fundamental analysis, news trading, scalping, swing trading, position trading, options trading, and hedging, traders can potentially maximize profits and manage risk in the volatile oil futures market.

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 at CannonTrading.com 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.

Crude Oil Futures Market Outlook, Jobs Data and More

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

The rest of the week in futures markets:

By Mark O’Brien, Senior Broker

Today’s FOMC trading volume on the ES was one of the lowest I ever seen o an FOMC day!!

Over the weekend of April 1-2 – one month ago, Saudi Arabia and other OPEC+ oil producers announced cuts in their collective crude oil output that amounted to about a million barrels per day. Prior to the announcement – a surprise before the group’s ministerial panel meeting on Monday where analysts expected the oil cartel would hold steady on production – front month crude oil futures had dropped to near 15-month lows approaching $70 barrel. At Sunday’s opening of trading, crude prices gapped up over $5.00 per barrel.

 

If as some analysts surmised after the cuts were announced, which was that OPEC+ was taking pre-emptive steps in case of any possible demand reduction, they were dead on. Since then, renewed fears of recession in the U.S. (seemingly a constant over the last 12 months or so) have once again stoked demand fears in the energy sector. June crude oil futures have since filled the price gap created on that Sunday opening in early April and have continued falling. As of this typing, crude has sliced ±$15.00 off its post-announcement high, through $70.00 per barrel and is currently hovering near $69.00. Even this week’s news of another Iranian seizure of a foreign-flagged oil tanker in the Persian Gulf and yesterday’s much-larger-than-expected decline in crude oil stocks – 3.9 million barrels – failed to quell bearish sentiment. Keep an eye on this Friday’s jobs data as the report now stands in front of a significant crude oil sell-off with the numbers more capable than usual to drive the direction of crude oil near-term.

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Plan your trade and trade your plan. 

ac6683dd 071f 4f97 96dd d187d2800712

 

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

for 05-04-2023

#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

3b644da2 2bee 4d39 8d98 5208a20bec39

Economic Reports, Source: 

Forexfactory.com

 

 

 

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.