Crude oil is a fossil energy source and is used to produce electricity and fuel for almost all cars and transportation vehicles. Moreover crude oil is very important for chemical industries and its components are essential for the production of synthetics and other chemical items, amongst them medicine and cosmetics. That is why it is also called “black gold”. Its role in the global economy and as an instrument of power becomes most obvious in the recurrent oil crises scenarios with political background.
The oil business is made by international corporations (big players). Participation of small investors in this market via so called “Trading Platforms” (Commodity Exchange) is only a bet on sinking or rising prices and has a high risk. This does not meant that the investor is really participating in the buying and selling of oil.
The risk to be on the wrong side when betting on sinking or rising oil prices (trade with options and futures) is avoided and does not exist when there is a participation on an existing oil contract whereby the spread between buy and sell has been agreed and fixed, so that a change in price does not effect this contract. Profits that are generated this way are a true alternative for investors with capacity, especially in times of low interest gains. But how can one find such an opportunity?
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