What Is Oil Speculation?

Oil trading is an important financial trading method. The domestic oil trading market started later than abroad, and the institutional system is still being further improved. The form of oil trading mainly includes oil futures trading and oil spot trading. Because spot trading is superior to futures trading in many ways, spot oil trading is a widely used and internationally-focused trading method, especially in economically developed countries. On February 14, 2014, the Beijing Petroleum Exchange began to launch spot oil trading, which is the first and currently the only oil firm in China to conduct spot oil trading.

Oil trading

Oil trading is important

The pricing of the international crude oil market is based on the standard oil in the major oil producing regions of the world. For example, on the New York Futures Exchange, its crude oil futures are based on the "Intermediate Base Crude Oil (WTI)" produced by West Texas of the United States. WTI is used as a reference oil. Because of the strength of the U.S. super crude oil buyer and the influence of the New York Futures Exchange, crude oil futures trading with WTI as the benchmark oil has become the leader in the volume of global commodity futures.

Generally speaking, the

As the world's largest commodity in circulation, the biggest factor affecting the trend of crude oil is supply and demand, followed by the money effect.

The relationship between supply and demand includes supply and demand. As long as the supply is reflected in the stability of supply in the world's largest oil-producing countries, geopolitics will affect supply and it will greatly affect oil prices.

Demand is reflected in the demand for crude oil by the world's major economies. If the economic data of the United States and China, especially industrial ones, is poor, it will directly affect the demand for crude oil. due to

In the following data, the most intuitive impact is crude oil inventory data, and other data more cause short-term fluctuations.

U.S. non-agricultural employment data

The change in the number of non-agricultural employment reflects the development and growth of the manufacturing and service industries. A decrease in the number means that the company reduces production and the economy enters a depression. In the absence of hyperinflation, if the number increases significantly, it indicates a healthy economy. situation.

Impact on crude oil: When the United States implemented normal monetary policy,

oil

Spot oil trading started late in China and is considered one of the most promising industries. Most domestic oil exchanges only support the traditional spot trading model, only

Six major types of transactions:

Domestic includes

Longest existed

The entry point for spot transactions to enter the market operation is e-commerce, participating in business

Spot trading is based on the spot market. Spot trading is also called online spot commodity trading. Since 1997, professional trading markets for various commodities have been established in China, and the transaction value of each spot commodity trading market has grown geometrically. This fully shows that there is an unlimited development space for spot trading. ^[2]

1. Many investment members (spot producers, spot users, arbitrage speculators)

In spot trading, all arbitrage speculators do. The trading instruments listed on the spot trading market have large price fluctuations in the spot market. The perfect trading mechanism is conducive to speculators' flexible trading, risk control, and full access to the difference in price fluctuations, thereby obtaining huge investment returns.

2. The information is clear and the law is obvious ^[2]

Spot trading is the centralized bidding on the commercial Internet, unified matching, online settlement, and real-time display of price quotes, which helps traders accurately and quickly determine fluctuations in price quotes.

3. Simple operation and quick investment.

Investors can hold spot commodities for long-term physical delivery, or they can buy and sell hedging transactions in the short-term and take advantage of the difference. The so-called investment is small, the risk is small, the return is fast, and the return is high. ^[1]