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.

Trading Crude Oil Futures in the USA Amidst Middle East Conflict + Futures Trading Levels for Oct. 17th

October 16th, 2023 Filed under Commodity Brokers, Commodity Trading, Crude Oil, Day Trading, Energy Futures, Future Trading News, Futures Broker, Futures Exchange, Futures Trading, futures trading education | Comment (0)

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Trading Crude Oil Futures in the USA Amidst Middle East Conflict

Learn more about trading Crude Oil Futures with E-Futures.com here.

Trading oil futures, particularly crude oil futures, plays a pivotal role in the global energy market and is influenced by a multitude of factors. This article explores the dynamics of trading oil futures in the United States and delves into the impact of Middle East conflicts, with a specific focus on recent events in Israel and Gaza. These geopolitical tensions have far-reaching implications for oil futures, as the Middle East remains a crucial source of crude oil production.

Crude Oil Futures in the USA

Crude oil is a fundamental component of the global economy, and the United States, as one of the largest consumers and producers of oil, is deeply entrenched in the world of oil futures trading. Crude oil futures are standardized contracts that allow traders to buy or sell a specified amount of crude oil at a predetermined price on a future date. In the USA, these futures are primarily traded on the New York Mercantile Exchange (NYMEX) under the ticker symbol CL.

The demand for crude oil futures in the USA is driven by various factors, including:

Energy Consumption: The USA is one of the world’s largest consumers of energy, and oil is a primary source. Crude oil futures provide a way for energy companies, airlines, and other sectors to hedge against price fluctuations.
Speculation: Speculators in the commodities market often trade crude oil futures, hoping to profit from price movements. This speculative activity can increase market liquidity and influence short-term price changes.
Global Events: Geopolitical events, especially those in oil-producing regions, have a significant impact on oil futures trading. The Middle East, being a major source of oil production, has been a focal point for oil market participants.

Middle East Conflicts and Oil Futures

The Middle East is known for its volatile geopolitical environment, often stemming from religious, territorial, and political disputes. Recent events in Israel and Gaza have further highlighted the role of geopolitical tensions in influencing oil futures prices.

Supply Disruptions: The Middle East, particularly the Persian Gulf, is home to some of the world’s largest oil reserves. Ongoing conflicts in the region can disrupt oil production, leading to supply shortages. These disruptions can cause a surge in oil prices, impacting crude oil futures.
Market Sentiment: Even the perception of conflict or potential supply disruptions can drive market sentiment. Traders closely monitor developments in the Middle East, and any escalation of tensions can lead to increased speculation and higher trading volumes in crude oil futures.
OPEC and Non-OPEC Nations: The Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC nations in the Middle East play a pivotal role in global oil production. Geopolitical tensions can influence OPEC’s decision-making, leading to production cuts or increases, directly impacting oil futures prices.

Impact of Recent Israel-Gaza Conflict

The Israel-Gaza conflict, a long-standing and deeply rooted conflict in the Middle East, has repeatedly led to fluctuations in oil prices and, consequently, crude oil futures. Recent escalations in the region have had the following effects:

Oil Price Volatility: The Israel-Gaza conflict has added uncertainty to global oil markets, causing crude oil futures to exhibit increased volatility. Traders react to events in the Middle East by adjusting their positions in response to the shifting geopolitical landscape.
Safe-Haven Assets: Investors often turn to commodities like gold and oil as safe-haven assets during times of geopolitical turmoil. This shift in investor sentiment can drive up demand for crude oil futures.
Production Risk: Israel is not a major oil producer, but it is geographically close to critical oil transit routes, such as the Suez Canal. Any disruption to these routes can have a domino effect on global oil supply, impacting crude oil futures prices.
Influence on OPEC: The Israel-Gaza conflict can exert pressure on OPEC member nations, some of which are involved in the conflict. Geopolitical considerations, including their economic and political interests, can affect OPEC’s oil production decisions.

Risk Management in Oil Futures Trading

Given the inherent volatility in oil markets, traders in crude oil futures must employ effective risk management strategies. These include:

Diversification: Traders can spread their risk by diversifying their investment portfolio, not focusing solely on crude oil futures. This can mitigate losses during periods of heightened geopolitical tensions.
Stop-Loss Orders: Setting stop-loss orders allows traders to define their maximum acceptable loss. If the market moves against them, the position is automatically closed when the stop-loss level is reached.
Fundamental Analysis: Staying informed about geopolitical events and oil market fundamentals is essential. Traders need to understand how these factors can influence oil futures prices.
Technical Analysis: Utilizing technical analysis tools can help traders identify price trends, entry and exit points, and potential price targets.

Trading crude oil futures in the USA is a complex and dynamic process that is deeply interconnected with global geopolitics. Recent events in the Middle East, especially the Israel-Gaza conflict, highlight the significant influence of geopolitical tensions on oil futures prices. Traders and investors must remain vigilant, stay informed, and employ effective risk management strategies to navigate the ever-changing landscape of crude oil futures trading. As the world continues to rely on oil as a primary energy source, the impact of geopolitical conflicts on oil futures remains a critical consideration in the financial markets.

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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

10-17-2023

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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.

Weekly Newsletter: How to Trade Economic Reports + Futures Trading Levels for Oct. 16th

October 13th, 2023 Filed under Charts & Indicators, Commodity Brokers, Commodity Trading, Corn Futures, Crude Oil, Day Trading, Energy Futures, Future Trading News, Future Trading Platform, Futures Broker, Futures Exchange, Futures Trading, futures trading education, Trading Wheat Futures, Weekly Newsletter | Comment (0)

Cannon Futures Weekly Newsletter Issue # 1167

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In this issue:

Important Notices – Trading Contest/Real Cash Prizes
Trading Resource of the Week – Trading Around Economic Reports
Hot Market of the Week – December Cotton
Broker’s Trading System of the Week – ES Swing Trading System
Trading Levels for Next Week
Trading Reports for Next Week

Important Notices

Trading Contest – Win Real Cash Trading Simulated Account!

Energy Futures Trading Competition

Duration

Start: October 15th at 5:00 PM CT

End: October 27th at 4:00 PM CT

Prizes (Cash Prizes!!)

First Place: $2500

Second Place: $1000

Third Place: $650

Random Selection: $500

Competition Details

Trade any Group Energy Futures Products including Crude Oil, Micro Crude Oil, RBOB Gasoline, and Natural Gas
All Trading will be in the Front-Month Contract
All trades will be completed in the StoneX Trader Simulated Trading Environment using the white-labeled Contest Trader application
All traders will begin with a virtual account of $100,000.00 Your goal: increase the balance to as much as possible by the conclusion of the competition.
Top three traders with the highest P&L balance at the end will get a cash prize.
One winner will be chosen from the remaining participants to receive a cash prize.
The prizes to the winners shall be awarded in the form of a check (or any other form as reasonably determined by StoneX) and sent to the winner within ten business days of receiving the required tax documentation.

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.

In this “Trading Around Key Economic Reports” FREE Course you will learn:

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 – December Corn

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.

FREE TRIAL AVAILABLE

December Cotton completed its first upside PriceCount objective but to this point has not been able to extend its rally any further. Now, the chart has activated downside counts on the correction lower. The first objective projects a run to the 83.87 area.

PriceCounts – Not about where we’ve been , but where we might be going next!

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.

Broker’s Trading System of the Week

With algorithmic trading systems becoming more prevalent in portfolio diversification, the following system has been selected as the broker’s choice for this month.

Optimized Kinetic ES

PRODUCT

Mini SP500

SYSTEM TYPE

Swing

Recommended Cannon Trading Starting Capital

$30,000.00

COST

USD 127 / monthly

Get Started Learn More

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.

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Trading Levels for Next Week

Daily Levels for October 13th, 2023

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

Trading Reports for Next Week

First Notice (FN), Last trading (LT) Days for the Week: www.mrci.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 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!

CPI Tomorrow + Futures Trading Levels for Oct. 12th

October 11th, 2023 Filed under Commodity Brokers, Commodity Trading, Crude Oil, Day Trading, Future Trading News, Futures Broker, Futures Exchange, Futures Trading, futures trading education, Gold Futures | Comment (0)

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What you need to know for the last two trading days of the week

By Mark O’Brien, Senior Broker

General:

This morning the Labor Department released data on U.S. producer prices. It showed a higher-than-expected 0.5% uptick in food and energy prices at the wholesale level. The so-called core Producer Price Index – a narrower measure that excludes food, energy and trade services – showed a 0.2% increase, which matched forecasts. Looking at the big picture, the report suggests inflation remains stubborn and the Fed will remain vigilant in it continued efforts to check the U.S. economy with care and reduce inflation.

Markets look at the PPI as a leading indicator for inflation, as it gauges a wide variety of costs for pipeline goods that feed to consumer products.

In recent days, central bank officials have indicated that they may not need to enact additional hikes as Treasury yields have risen sharply on their own, tightening financial conditions. That in turn has helped assuage market fears, leading stocks higher this week.

Tomorrow, The Bureau of Labor Statistics will release its more closely watched Consumer Price Index (CPI) report, which measures the prices paid by consumers for a basket of consumer goods and services.

Metals:

Trading off its near one-year lows below $1,825/ounce on Friday, Dec. Gold has raced up ±$70/ounce as the crisis in Israel / Gaza / Lebanon has intensified. This commodity futures contract will likely show to be more sensitive to the turn of events in the region than any other.

Along the same lines, from a from a commodity price influencing perspective, the fighting in Israel / Gaza / Lebanon should have a limited impact on most commodities. Any sensitivity reactions in the markets will presumably be seen in indexes (seemingly sensitive to anything), energies and some currencies. Any signs the conflict escalates to involve other notable / regional state / non-state actors, traders should anticipate increased volatility in these market sectors and approach your trading appropriately.

Plan your trade and trade your plan.