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Sep

A simple guide to Investing in the Oil Market with Online Spread Betting

In the past century many have made their fortune and generated great wealth as the late great billionaire J. Paul Getty did in the form of oil.

The ever increasing demands on oil supply to power today’s energy needing consumer, continues to grow globally for oil as the energy source of choice for cars, heating, machinery etc. Countries experiencing significant growth cycles such as Russia, Brazil, India and China continue with their increased consumption to fuel their growth ambitions, placing even more high demand on the finite oil resources.

Whilst significant oil resources still remain untapped in areas such as Canada / Alaska, extraction of the oil in these areas is only economically viable at the much higher oil prices seen in recent years.

The impact in 2008 for the retail consumer was very well covered by the world media and felt hard by us all globally as the price of oil soared from $85.42 as of Janurary 22nd 2008 to $147.27 in July 11th 2008, at that time many industry experts predicated oil would continue the established trend and trade at the high price of $200 a barrel. The credit crunch and resulting cycle of wealth destruction globally during the second half of 2008 impacted demand for black gold with the price per barrel falling to $32.40 as from 19th December 2008. It has certainly been a roller coaster of a ride for oil in 2008.But it’s an opportunity for those in the know - the speculative investor - to make significant gains from trading, or on the other hand of course to have made significant losses.

While the media attention has been driven away in recent months to focus in on the demise of the banking sector, Oil has actually been making a spectacular recovery from the $32 December lows to hit $70 in recent weeks, the industry experts are now calling for $85 dollars a barrel whilst others suggest a short term correction may be in order. Whatever the future throws at it, the oil trader and speculator has the opportunity to profit from such moves if their opinion on the direction proves to be correct.

For the retail investor gaining exposure to either NYMEX Crude or BRENT Crude at first may not seem that straight forward, whilst the opportunity to trade Oil Company stocks or purchase Exchange Traded Funds (ETFs) (which can provide exposure to oil prices) has traditionally been the only obvious route through your online stockbroker, Financial spreadbetting and Contracts for Difference (CFD) trading makes accessing these commodity markets relatively straightforward. Investors can then take either long or short positions via the spread bet or CFD and trade the fluctuations in price in this and many other markets. Spread Betting firms and CFD providers also provide a wide range of market information, charting resources and trading technology which gives the retail investor access to a wide range of information. The weekly Crude Oil Inventories Update will actually provide real time market information for relevant trading data.

Only once a week, the Energy Information Administration (EIA) gives a small insight into what the future demand for oil is likely to be by releasing its Crude Oil Inventory numbers. Traders look for this information because the amount of oil commercial firms have in inventory impacts the price of oil in a relatively predictable way when taken into account with other factors in determining future oil prices.

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

Another big organisation that has a impact on the price of oil is known as OPEC - the Organisation for Petroleum Exporting Countries.The OPEC is made up by this cartel of countries, Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela. The cartel is headquartered in Vienna and hosts regular meetings among the oil ministers of its many different Member Countries.

According to the statutes of the cartel, one of the main goals is the determination of the best means for safeguarding its interests, individually and collectively. It also pursues ways and means of ensuring the stabilisation of prices in international oil markets, with a view to eliminating harmful and unnecessary fluctuations; giving due regard at all times to the interests of the producing nations and to the necessity of securing a steady income to the producing countries; an efficient and regular supply of petroleum to consuming nations, and a fair return on their capital to those investing in the petroleum industry.
The OPEC issues a Monthly Oil Market Report and a few other bulletins which will again impact on the market pricing which in turn are keenly awaited by oil traders globally.

Whilst trading oil may seem the preserve of an elite group of traders in London, Chicago or elsewhere in the globe, the price of petrol or gasoline directly impacts nearly everyone in the developed world. It impacts the cost of transporting goods and services to every area of the globe and as we saw in 2008, this can have a negative impact both on the price we pay for personal transportation at the pump, but also the cost of basic food and services we rely on in our day to day lives. Whilst we saw little pull back in pump prices during the past 6 months these same experts predict a return to higher pump prices in the future which could impact us all.

Some have therefore turned to spreadbetting and CFDs to hedge their exposure to rising fuel costs by placing medium to longer term trades which pay out if oil prices rise across the globe. This approach can also be made relevant for small as well as medium sized businesses exposed to the oil price moves- from hauliers, farmers and fisherman to practically any business that can be impacted by rising fuel costs. Giant companies have done this for many years,airlines hedging fuel costs to ensure any unexpected sharp rises in crude do not impact their budgetary plans in any fiscal year. In 2008 many haulier firms folded due to the rising cost of fuel but also due to fuel taxes in the UK remaining very high - approximately 61% of the cost paid at the pump is tax revenue for the UK government, European haulier firms subject to lower fuel taxation were able to generate a significant competitive advantage against the UK haulage business at this time who were left unable to pass the full cost of rising fuel onto their customers.

Beyond hedging, spread betting and CFDs also allow investors the opportunity to trade on oil companies’ stock prices - from the Exxons, Shells and BPs of this world to the smaller exploration outfits, drilling as Getty did over half a century ago for that next 20,000-barrels-a-day oilfield and the opportunity to make a lot of money.

Technorati Tags: CFD Trading, contracts for difference, Financial Spread betting, getty, investing in oil, investment, oil, oil market, spread betting, stock market

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Nov

Motorists queue ahead of China fuel price rise - 20 June 08

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On Friday Beijing hiked the cost of fuel by 18-percent. As a result -on the other side of the globe in New York - oil prices fell by almost five-dollars. Traders are worried that Chinese consumers won’t buy as much petrol - dampening global demand for oil. Al Jazeera’s Laura Kyle reports on how China’s price rise is providing hope for the rest of globe.

Duration : 0:2:29

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Technorati Tags: Al, aljazeera, barrell, China, Jazeera, kyle, laura, market, new, oil, price, stock, York

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Nov

Market Report - Asia Shares Cut Losses

Posted by admin as shares and stocks

ANCHOR:
Seoul shares ended lower after volatile trading today, led by automakers and some banks, with the positive impact of news of a U.S. government-backed bailout of Citigroup lasting only briefly.

Kia Motors plunged nearly 15 percent after South Korea’s No. 2 auto maker said it was paying off 300 million euros worth of debt due on Monday in cash.

Chinese stocks dropped sharply on Monday, led by property shares, as concern about the market’s ability to absorb fresh supplies of equity outweighed optimism over China’s economic stimulus package.

Hong Kong shares fell 1.2 percent, with financial stocks hit as the fate of U.S. banking giant Citigroup remained undecided and on reports of a $3 billion capital raising plan by Standard Chartered.

The benchmark Hang Seng Index ended the morning session 150.68 points lower at 12,508.52.

Taiwan stocks fell a quarter of a percent as technology shares declined ahead of data due out later in the day that is expected to be gloomy.

Investors largely ignored a Wall Street rally as they took cues from losses in other Asian stocks.

Duration : 0:1:20

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Technorati Tags: asia, Economy, KOSPI, market, money, nikkei, ntd, oil, price, report, stock, stocks, trady

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Nov

Market Report - Asia Shares Cut Losses

Posted by admin as shares and stocks

Kia Motors plunged nearly 15 percent after South Korea’s No. 2 auto maker said it was paying off 300 million euros worth of debt due on Monday in cash.

Hong Kong shares fell 1.2 percent, with financial stocks hit as the fate of U.S. banking giant Citigroup remained undecided and on reports of a $3 billion capital raising plan by Standard Chartered.

The benchmark Hang Seng Index ended the morning session 150.68 points lower at 12,508.52.

Taiwan stocks fell a quarter of a percent as technology shares declined ahead of data due out later in the day that is expected to be gloomy.

Investors largely ignored a Wall Street rally as they took cues from losses in other Asian stocks.

Duration : 0:1:20

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Technorati Tags: asia, Economy, KOSPI, market, money, nikkei, ntd, oil, price, report, stock, stocks, trady

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Nov

Money Minute: Oil Falls, Pickens, MPAA

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BusinessMoney Minute: Oil Falls, Pickens, MPAAMoney Minute: Oil Falls, Pickens, MPAAThe ociated PressCrude oil sank by $2.54 to $122.19 a barrel on the New York Mercantile Exchange Tuesday. Oil has now fallen more than $25 from its trading high of $147.27, reached July 11. (July 29)AP Money MinuteThe Motion Picture ociation of America is suing two Web sites saying they make it easy for consumers to illegally download movies.The MPAA filed copyright infringement suits against F-o-m-d-b dot com and Movierumor.com.The ociation says the sites profit from advertising while posting links to pirated movies as recent as “The Dark Knight” and “The X-Files: I Want to Believe,” which are still in theaters.————————-Oil prices have tumbled to their lowest level in seven weeks. Crude oil sank by $2.54 to $122.19 a barrel on the New York Mercantile Exchange. Oil has now fallen more than $25 from its trading high of $147.27, reached July 11. The Energy Dept says demand for oil in the U.S. continues to fall, dropping by 891,000 barrels per day in May compared the same month a year ago.———————Billionaire investor T. Boone Pickens has dumped his holdings in Yahoo over the way the Internet company’s management handled sales talks with Microsoft. Pickens told the San Francisco Chronicle that he sold all 10 million of his Yahoo shares. He’s declining to quantify his losses, but he acquired his stake in mid-May when Yahoo was trading between $24 and $28 per share. Yahoo’s stock price hasn’t climbed above $22.50 for the past week, meaning Pickens probably lost tens of millions of dollars.I’m Mark Hamrick with AP Money Minute(****END****)

Duration : 0:1:23

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Technorati Tags: Falls, minute:, mpaa, oil, pickens, street, wall

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Nov

Big Oil Choosing Stock Over Exploration

Posted by admin as stock prices

BusinessBig Oil Choosing Stock Over ExplorationBig Oil Choosing Stock Over ExplorationThe ociated PressEasy oil is gone, gasoline and oil prices have hit unimaginable heights and energy prices are a leading contributor to slowing global growth, so Big Oil must be devoting more and more money to exploration, right? Not so. (July 21)With fuel prices hitting unimaginable heights and the nation’s oil giants preparing to report what are expected to be huge second-quarter profits, you may be asking yourself, “what are they doing with all that money?” According to researchers at Rice University, the bulk of that cash was not spent of exploration, but on stock buybacks and shareholder dividends. Rice’s data show that Exxon Mobil, Chevron, ConocoPhillips, Royal Dutch Shell and BP _ spent roughly 55 percent of their operating cash flow last year buying back shares and paying dividends. Meanwhile, the money they spent to find new deposits of fossil fuels has for several years remained relatively flat, with percentages in the mid-single digits.[Notes:SOT: Charles Sheehan, AP Energy Editor][Notes:Anchor Voice]If, as expected, the oil giants report eye-popping second-quarter earnings, those results will almost certainly lead to another public outcry, and perhaps another visit before Congress for the oil executives. ___ ___, The ociated Press.

Duration : 0:1:32

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Technorati Tags: choosing, exploration, oil, prices, stock

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Nov

Bounds on McCain: MSNBC 10/29/08

Posted by admin as shares

Tucker Bounds on John McCain
“MSNBC Live” 16:08pm
Interview

TRANSCRIPT:
DAVID SHUSTER: Heres what Sarah Palin said to the New Yorker magazine [] about the levies the state of Alaska imposes on oil companies in her state:

SARAH PALIN: Were set up, unlike other states in the union, where its collectively Alaskans own the resources. So, we share in the wealth when the development of these resources occurs.

SHUSTER: Is Sarah Palin a socialist because she wants to share the wealth?

TUCKER BOUNDS: No, in Alaska its a unique state because all the residents there have a unique share of the natural resources, that the oil companies come in and use, so therefore they share the revenues of the resources. Its an entirely different incomprehensible comparison that youre making, David. []

SHUSTER: Dont we all share the benefits of capitalism [] in this great country?

BOUNDS: Its absurd to equate sharing the oil resources that all of these Alaskans have an ownership stake in, and trying to negotiate a deal with the oil companies that use those resources that

SHUSTER: But they have no more ownership than the people off the coast of Louisiana do.

[]

SHUSTER: Heres what the anchorage daily news said, [] It is not a contract and does not guarantee a pipeline would be built. Your reaction?

BOUNDS: It is a pipeline that will be built. This is an agreement that all sides came together on to agree to begin building the biggest infrastructural project in North American history.

LABEL: TB JM MSNBC 10-29-08 16.08 (LR#122)

Duration : 0:5:22

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Technorati Tags: Alaska, Bounds, oil, palin, sarah, taxes, TRACKING, Tucker

25 Comments »

Nov

IDMTrader - Opis platformy - Forex, Futures, Akcje

Posted by admin as forex

http://www.idmtrader.pl Opis działania platformy transakcyjnej IDMTrader zapewniajacej pelny dostep do transakcji na rynkach zagranicznych, walutowych, akcji, forex, futures.

Duration : 0:1:38

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Technorati Tags: akcje, CFD, dollar, euro, forex, futures, handel, idmsa, idmtrader, krakow, makler, maklerski, oil, poland, pound, ropa, rynek, waluty

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Nov

Market Report - Asia Shares Shake Off Oil

Posted by admin as shares and stocks

ZHANG:
Asian shares were mostly higher Monday, as soaring oil and commodity prices actually boosted a number of regional-linked stocks.
Australian shares posted a fourth straight gain, led by resource firms like Woodside Petroleum and top miner BHP Billiton.
In Tokyo, the Nikkei hit a 4-month peak, led by Nippon Steel on reports that the company had agreed with automakers to hike sheet steel prices. Meanwhile, trading firms, as well as oil company Inpex Holdings, rose on the record oil prices. The Nikkei has now gained 22 percent from a year low in March.
Taiwan stocks hit a fresh year peak, boosted on hopes of better economic conditions under the new President and possible stronger China business ties.
But Seoul shares broke the upward trend, ending lower after the benchmark KOSPI touched a year peak last week. Technology bellwethers like Samsung Electronics fell, although profits outlooks were expected to support prices.