Commodity Daily News

Oil is Up on U.S Bailout Plan Announcement.

Throughout history, Crude Oil prices have gone trough various price movements that have shaped the current rate. Only a few traders today were active in the market when Crude Oil was selling for under $30 a barrel, and even fewer remember prices as low as $3. However, those who have recollection of those prices did experience one of the most bizarre movements to take place since 1973 when the world experienced its first Oil Shock. Following 9/11, Crude Oil prices spiked from lower than 30$ to a record high at mid 2008 of nearly 150$ per barrel. Basically, a series of events throughout the years amplified the price growth to set the current rate. Those price movements reshaped the global economy, and the instability of Crude Oil prices, to what we are seeing today.

The main factors that impact the price of Crude Oil are supply and demand, embargos, natural disasters and war. To be successful in Oil trading, investors need to be aware of the impact each of these factors plays on commodity prices, as well as understanding that commodities such as Gold and Oil are bought when strong currencies, like the USD, become weaker. Commodities then play the role of a safety net for investors running from the losses they are taking in the currency market. In addition, speculation by investors is by far more important in commodities than in currencies as the will of large, influential investors can reshape the prices in the market when they take bold stances on a specific trading position in order to capture a corner on the market.