Is it All Gloom For Oil Futures?
If you read recent news reports such as the business section of the Wall Street Journal you will see that the price of Futures oil contracts have recently fallen around 4.
2 percent.
This of course feeds the gloom and doom as one considers the hope of a US economic recovery.
As this fall is the biggest percentage decline in four months.
This movement downwards has apparently overturned a previous rally to near $U75 a barrel.
Now we can rest assured that any movements in a futures contract price has implications.
But the response is usually driven by fear or greed (or both).
So how much it affects you and me at the workshop floor is anybody's guess and we must understand that we by and large must accept any effect it has on our daily living.
Just like any commodity the price sometimes goes up and sometimes goes down.
Whilst this volatility in the futures oil price might be unwanted for some, I mean who wouldn't be feeling bad if they just filled their tanker full of crude oil and now the price drops.
For the futures trader it is an opportunity.
The futures trader can make income whichever way the market moves.
In fact the trader of an oil contract will only make money when there is a price movement.
So the day trader of futures contracts actually loves it when the price moves on the underlying commodity (up or down).
So from this we can see that there is good in all news, it is just the perspective from which we view it.
So the gloom in the market is just an opportunity for those day traders that are trading commodities that have futures contracts.
2 percent.
This of course feeds the gloom and doom as one considers the hope of a US economic recovery.
As this fall is the biggest percentage decline in four months.
This movement downwards has apparently overturned a previous rally to near $U75 a barrel.
Now we can rest assured that any movements in a futures contract price has implications.
But the response is usually driven by fear or greed (or both).
So how much it affects you and me at the workshop floor is anybody's guess and we must understand that we by and large must accept any effect it has on our daily living.
Just like any commodity the price sometimes goes up and sometimes goes down.
Whilst this volatility in the futures oil price might be unwanted for some, I mean who wouldn't be feeling bad if they just filled their tanker full of crude oil and now the price drops.
For the futures trader it is an opportunity.
The futures trader can make income whichever way the market moves.
In fact the trader of an oil contract will only make money when there is a price movement.
So the day trader of futures contracts actually loves it when the price moves on the underlying commodity (up or down).
So from this we can see that there is good in all news, it is just the perspective from which we view it.
So the gloom in the market is just an opportunity for those day traders that are trading commodities that have futures contracts.
