One of the biggest factors investors who participate in crude oil trading need to pay attention to is the supply in the U.S. According to ABC News, prices recently dropped closer to $104 a barrel, as U.S. supplies increased.
In the week ending April 18, U.S. crude supplies jumped by 3.1 million barrels, which has pushed prices down. However, further decreases are being stopped by continued tension in Ukraine due to the fact that additional economic sanctions could disrupt Russian oil and gas exports.
U.S. supplies and tensions in Ukraine are two of the biggest factors inventors need to consider when trading oil, as both can cause market volatility in opposite directions. If there is any indication that the situation in Ukraine could get worse, traders may be able to predict upward movement in the oil markets.
Another important factor for oil traders is the potential for U.S. exports. According to Bloomberg, chances are the ban on crude exports won’t be lifted within the next five years, despite the fact that domestic supplies are rising.
“A full repeal of the crude oil export ban is at least five years away under most scenarios, unless of course domestic U.S. crude oil prices collapse,” Francisco Blanch, New York-based head of commodities research at Bank of America, said in a report.
However, a lift of this ban isn’t impossible, and that is something investors should keep a close eye on, as U.S. oil exports could have a major impact on the market.
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Article provided by HY Markets Forex Blog
