Oil is one of the most widely traded commodities in the world. It is the one commodity that’s used to power locomotion, provide energy to homes and businesses, and make plastics and other products. There are two different types of oil…
Trading Oil Binary Options
Trading oil binary options is a relatively simple process by which traders stand the chance of earning incredibly high returns in a short amount of time. Binary options traders do not purchase stocks in oil companies; instead, they predict the movements in the value of oil. If their predictions are correct, they can earn up to 80% returns with each trade.
What Causes The Value Of Oil To Move?
The value of oil is heavily influenced by the laws of supply and demand. As a matter of fact, over supply of oil caused the decline in it’s value that started in late 2014; known now as the oil crisis. However, when oil production numbers are low, threatening reserves, the price of oil tends to skyrocket.
Worldwide economic conditions also play a crucial role in the movement of oil’s price. Oil is used in cars, air planes, to power buildings and more. With that said, when economic conditions are poor, consumers tend to travel less and become more conscious of their energy usage. As a result, demand for the commodity falls; causing a reduction in its price. On the other hand, when economic conditions are good, consumers spend more money on energy and travel; ultimately increasing the value of oil.