Oil and Oil stocks

This is a discussion on Oil and Oil stocks within the Discretionary Trading forums, part of the Methods category; Hi, I'm new to this thread and wondering if anyone has any thoughts on trading oil correlations? I've been reading ...

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Old Sep 6, 2013, 10:42am   #76
Joined Jun 2012
Hi, I'm new to this thread and wondering if anyone has any thoughts on trading oil correlations? I've been reading about this recently, and it sounds very interesting. Any advice?
Mrs M is offline   Reply With Quote
Old Sep 6, 2013, 1:15pm   #77
Joined Aug 2013
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Originally Posted by Mrs M View Post
Hi, I'm new to this thread and wondering if anyone has any thoughts on trading oil correlations? I've been reading about this recently, and it sounds very interesting. Any advice?
Iím no expert on trading oil at all but from my experience the two main factors that affect the price of oil is the strength/weakness of the USD and Supply and Demand. Obviously with events like the problem in Syria unfolding concerns are that oil delivery from surrounding countries like Iraq, Iran etc may suffer hence sending oil prices up to levels not seen for many months. The USD has an influence in all commodity prices as that is the currency they are priced in so an increase in the price of the USD would subsequently make USD denominated products more expensive, slowing demand and causing prices to fall. As with any type of trading its not quite as black and white as that but if you use those two rules as your foundations then im sure you will be heading along the right tracks. Hope that helps mate.
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Old Sep 6, 2013, 4:39pm   #78
Joined Jun 2012
Thanks for your reply. The strategy I've been mulling over trades the correlations between Brent and WTI - seems pretty subtle, but I'm hoping is less open to other influences that trading correlations between oil and currencies.
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