Crude Oil Futures News & Information on Cannon Trading

Category Archives: 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.

Oil Futures 101

May 16th, 2023 Filed under Crude Oil | Comment (0)

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:

Mars – a heavy, sour crude oil produced in the Gulf of Mexico.
Bonny Light – a light, sweet crude oil produced in Nigeria.
Tapis – a light, sweet crude oil produced in Malaysia.
Es Sider – a light, sweet crude oil produced in Libya.
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

May 16th, 2023 Filed under Commodity Brokers, Commodity Trading, Crude Oil, Currency Futures, Future Trading News | Comment (0)

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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

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

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.

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

May 10th, 2023 Filed under Commodity Trading, Crude Oil, Day Trading, Future Trading News, Futures Trading, Gold Futures, Metal Futures | Comment (0)

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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.

Futures Trading Levels

for 05-11-2023

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

Economic Reports, Source:

Forexfactory.com

Trading Techniques for Oil Futures

May 4th, 2023 Filed under Crude Oil, Future Trading News | Comment (0)

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:

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.
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.
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.
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.
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.
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.
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.
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.

Crude Oil Futures Market Outlook, Jobs Data and More

May 3rd, 2023 Filed under Crude Oil, Day Trading, Future Trading News, Futures Trading | Comment (0)

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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.