From China to the United States: A Big Week of Developments

Posted in Top Headlines by on January 23, 2017

The world has been anticipating the inauguration of Donald Trump as the 45th President of the United States. Whether people like this idea doesn’t really matter for the oil industry at this point. All that matters is how he handles the economy in the United States, foreign policies and relationships that can impact oil.

A Big Non-Development in China

China was expected to launch its own oil futures contract but that plan has been halted. When the news of the possible Chinese oil futures contract came about, some people were worried because of the manner in which Beijing handles commodities trading. Another concern was the difficulty in trading yuan. China has quietly backed off of this plan, which was set to use a combination of crudes from China and the Middle East to set its prices.

President Trump’s Policies

We previously discussed how President Trump’s 100-day plan could give oil a big boost because he is planning to do away with some unfavorable policies. The new policies would favor fossil fuels in part by removing some of the restrictions on these fuels and removing the Obama-Clinton roadblocks that currently exist for projects like the Keystone Pipeline.

Another factor that is worth keeping an eye on is how President Trump boosts the economy. This is another one of his key campaign promises. An improved economy in the U.S. would likely mean an increased demand for oil. If you factor in the current OPEC and non-OPEC agreements to cut production, you can imagine how the price of oil would have been boosted because of the higher demand and lessened supply.

The coming months are going to be very telling with regard to the price of oil. Not only will it be interesting to see how the market reacts to President Trump’s policies, it will also be interesting to see how it reacts to the summer travel season and similar factors.

How to Trade $10,000 of Oil with a Few Hundred Dollars

With an online forex trading platform you have the ability to trade with leverage of up to 100:1 buying power. That means that you could control an oil trading position of 1000 barrels of crude oil with only a couple hundred dollars. The price of energy changes daily, and you can take advantage of these market price fluctuations. With a live account your capital is at risk. Start today by opening a practice demo account.

Open Account Here

Learn How to Trade Oil Online With a $100,000 Demo Practice Account. Demo accounts are a great way to practice online trading in real market conditions without risking any money. Register Here and Start Trading Crude Oil Immediately!

Top Broker Bonus Offers

plus500_logo
Get up to 30% bonus on your first deposit! T&C apply. Your capital is at risk.
avatrade-logo
Limited time offer. Get up to 30% bonus on first deposit. T&C apply
easymarkets_logo
Up to $2,000 bonus based on first deposit amount