Brent insight Crude Oil Bullish move continues November 23, 2017
- Crude Oil is trading at $57.90
- crude oil traded at a high of $57.98
- Development of Bullish Trend Continues
Crude Oil Bullish move continues – API reported a massive draw of 6.4 million barrels in US crude oil inventories in the week ended
Crude O is trading at $57.90 per barrel, 1.4% higher from the New York close. During the session, crude oil traded at a high of $57.98 per barrel and a low of $57.03 per barrel.
Crude Oil Bullish move continues
The commodity advanced in the New York session yesterday, closing 1.22% higher at $57.10 per barrel, after the API reported a massive draw of 6.4 million barrels in US crude oil inventories in the week ended 17 November. Crude oil has its first support at $56.83 per barrel and its first resistance at $58.48 per barrel.
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Commodities Buyers and Producers
The sale and purchase of commodities is usually executed through futures contracts on exchanges that standardize the quantity and minimal satisfactory of the commodity being traded. As an example, the Chicago board of trade stipulates that one wheat agreement is for five,000 bushels and also states what grades of wheat can be used to meet the settlement.
There are sorts of traders that change commodity futures. The first is customers and producers of commodities that use commodity futures contracts for the hedging functions for which they were first meant. Theses buyers truly make or take delivery of the actual commodity while the futures agreement expires. As an example, the wheat farmer that vegetation a crop can hedge towards the hazard of dropping money if the charge of wheat falls before the crop is harvested. The farmer can promote wheat futures contracts while the crop is planted and guarantee a predetermined price for the wheat at the time it’s far harvested.
Theses traders in no way have the desire to make or take transport of the real commodity while the futures agreement expires. Among the futures markets are very liquid and have an excessive degree of each day variety and volatility, making them very tempting markets for intraday buyers. A number of the index futures are utilized by brokerages and portfolio managers to offset threat. Additionally, since commodities do now not generally exchange in tandem with equity and bond markets, some commodities can also be used correctly to diversify a funding portfolio.
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