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ONLINE  CRUDE OIL TRADING


Introduction!

Crude oil is one of the best commodities to trade. It is a very active market and it is well known with investors around the world. There is usually no shortage of news to cause the price of oil to move from day to day. This presents many good trading opportunities, whether you focus on day trading futures or you are a longer-term trader or investor.

Crude oil is one of the most actively traded commodities in the world.

The price of crude oil affects the price of many other assets including stocks, bonds, currencies and even other commodities. This is because crude oil remains a major source of energy for the world.

The main reports for crude oil are the EIA (Energy information administration USA) weekly Energy Stocks report and  API (American Petroleum Institute)API  is the largest U.S. trade association for the oil and natural gas industry.

API report is release every Tuesday. Click here For 2018 API time table (http://www.api.org/~/media/Files/Publications/WSB_2018_schedule.pdf)

The EIA report is released every Wednesday around 10:30 PM EST.  Or 3:30pm GMT) however, traders believe EIA report to be more reliable due to its government regulation.

How to Day Trade Crude Oil online.

Day trading crude oil is speculating on its short-term price movements. Physical crude oil isn't handled or taken possession of, rather all the trading transactions take place electronically and only profits or losses are reflected in the trading account.

Trading the Crude Oil Inventory Numbers

Once a week, the Energy Information Administration (EIA) and American Petroleum Institute (API)  gives us a glimpse into what the future demand for oil is going to be by releasing its Crude Oil Inventory numbers.

 Traders love this information because the amounts of oil commercial firms have in inventory impacts the price of oil in a relatively predictable way.

The more oil commercial firms have in inventory, the less demand these firms will have for oil in the future and the cheaper the price of oil will become.

The less oil commercial firms have in inventory, the more demand these firms will have for oil in the future and the more expensive the price of oil will become.

Of course, there are certainly other factors you should be looking at when determining the future price of oil so don’t read the news in a vacuum.

What is the Crude Oil Inventories Number?

The Crude Oil Inventories number reports the number of barrels of crude oil commercial firms have in inventory. Commercial firms report their inventory levels to the Energy Information Administration on a weekly basis, but the EIA must still make some estimates to arrive at the final number.

Oil Stocks to Watch

The Crude Oil Inventories number is especially important for shareholders in the nation’s largest oil companies. When you see the Crude Oil Inventories number rising, it is a bad sign for oil companies and will typically have a negative impact on the price of their stocks because they tend to make more money when oil prices are high.

 When you see the Crude Oil Inventories number falling, it is a good sign for oil companies and will typically have a positive impact on the price of their stocks because they tend to make more money when oil prices are high.

Here are a few of the oil companies you should keep an eye on:

– Exxon Mobil Corporation (NYSE: XOM)

– Chevron Corporation (NYSE: CVX)

– PetroChina Company Limited (NYSE: PTR)

– BP plc (NYSE: BP)

Inventory report site: www.forexfactory.com (Recommended)

Inventory Report Time: 3:30 PM

Inventory Report Day: Wednesday

But if there is any Holiday than Inventory may be released on next day

This strategy can help to Earn Big Profits in MCX Crude Oil.

Example of Inventory Reports:

Only Focus Actual and Previous Inventory Status.

Actual: Current Inventory Report.

Previous: Previous Inventory Report.

Here are some Inventory Reports:

Date

Actual

Forecast

Previous

April

4.8M

4.2M

8.2M

Example:1 Crude oil Trading on Inventory Report,

Date

Actual

Forecast

Previous

May

4.8M

4.2M

8.2M

As per Inventory report, 'Actual Data is: 4.8Million Barrels ', and 'Previous was 8.2Million barrels '.

It means Actual data is Lower than Previous data, so if Production is low than Prices will go UP because if supply is low and demand is high than prices will be increased.

If Actual is Lower compare to Previous than BUY Crude.

Example:2Crude oil Trading on Inventory Report.

Date

Actual

Forecast

Previous

April

10.9M

3.3M

4.8M

As per Inventory report, 'Actual Data is: 10.9M', and 'Previous was 4.8M'.

Actual Data is higher than Previous. It means Storage/Production is Higher than Previous. It means Production/Storage is higher than demand,

If Actual is higher compare to Previous than SELL Crude.

Through these examples, I have tried to answer the question, How to Trade Crude Oil on Inventory Report?

This is the trading strategy based on EIA report.

This is only for educational purposes .

Trading school Centers.

Trading school centers 1

Mulliner Towers 5th floor.                                          

Kingsway Road, Ikoyi Lagos                                        

Trading school centers 2

Le-Meridian Hotel, 45 Tombia

Street GRA Port Harcourt