The most typical feature of crude oil prices is high volatility, which is the result of numerous political and environmental factors that influence it. Many supply and demand factors also affect crude oil prices, the strongest which is global economic growth. In times of economic prosperity the demand for energies increases, while a decrease in consumption occurs when economy stagnates.
Beside economic changes, extreme weather conditions can also have a great impact on energies, leading to supply disruptions of crude oil, natural gas, or heating oil. As a result, such conditions can decrease or increase demand for many consumer services related to these energies. Moreover, global crude oilprices are highly affected by the political instability in some of the world’s biggest natural gas fields.
Even when stock market performance is low, there will always be a healthy consumer demand for oil. Thus oil is considered to be a safe haven for traders, along with the volatility of the oil markets that presents many opportunities for profit.
Oil is a globalized, 24-hour market, with its prices in constant motion. This makes it an ideal instrument for day traders who look for fast movements and choose CFDs as the easiest way to trade on oil prices.
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