oil_rafinery

Stabilizing Oil Prices before Fresh Supply Data

Tuesday news: there were some gains and losses of US crude oil futures prior to the release of the weekly inventory data of US oil. This happened after coming against the multi-annual lows on the concerns of oversupply.

Light, sweet crude futures are set for delivery in Feb CLG5, +0.13% on the NY Mercantile Exchange, trading up 0.1% or 7 cents at $53.68.

Brent crude in Feb on LCOG5 London ICE Futures exchange turned a brief -0.47% higher, but returning back to the red. There was a 0.3% or15 cent decrease in Futures to $57.74 a barrel.

The American Petroleum Institute later on Tuesday is scheduled for the publishing of its weekly US oil inventory data. On Wednesday, the US Energy Information Administration data is scheduled. There is a 1.25 million barrels decline expected to happen for the week ending December 26 according to the analysts polled by Platts.

Because of the strong winter demand, there is usually a decline in oil inventories around this time of year and because of high production levels and a build in stockpiles, oil prices will be pushed even lower according to traders.

Even though oil prices seem to continue to decline, chief market Ava Trade analyst, Naeem Aslam, states we are close to finding the bottom since the US reports a halt in the number of rigs which reduces supply and balances the demand. Trading oil is available at most binary options trading sites.

According to Baker Huges Inc., an oil field services corporation, amid low crude prices of US oil producers continues to scale back since the 37 count fall last week of the onshore drilling rigs. In fact, this is the 3rd week consecutively that the count of the drilling rig fell and is one of the largest since the tumble of crude oil prices in June. However, it will take a few months for how fast the spending cuts turn into a lowered oil production and is anticipated to be a gradual process.

Nymex crude was at its undermost value on Monday since May 1, 2009. Since its $107.26 52 week high in June, it has dropped 50%. In fact, this was the fastest 50% drop since 2008 for the Nymex crude front month contract. Within a 30 year span, it has dropped faster in 2 other periods which was in 1985 through 1986 and another from 1990 through 1991.

Since May 15, 2009, Brent crude was at its undermost. This new low pushes back the hope for more durable price support and according to Citi Future’s analyst Tim Evans; the market still is challenged by a surplus of 1.5 million barrels daily in the beginning months of 2015.

binary options

Binary Options are No Problem in Post-Holiday Slow Markets

These days have observed a higher trade in the S&P 500 futures in the early stages of the session which find a 2087.50 high. Even though some people may find the current price action to be overbought and having to close lower off the highs of this week, you will still find buyers who are pushing for a higher market and initiating a short for this market will be difficult.

With Nadex offering binary options, people are able to take a limited risk market position and craft a strategy that will fit their view and risk reward requirements.

At the moment, there is a 2087.00 trading for ESH5. If the week’s close remains below the price today, there could be a shortening of the 2085.00 daily option for the Nadex US500 (Mar) at a $50.00 price or better. This means people will get a $50 credit on their trades and will have the ability to maintain it if there remains a ESH5 close that stays below 2085.00. The risk to the trade would be the difference between the option value of $100 and the $50 credit which would leave people with a $50 risk. This would result in a 1.1 reward to risk ratio on their trade.

If there is a higher close today, people might want to consider purchasing the 2088.00 daily option for the Nadex US500 (Mar) which is priced at $50 or better. You can trade binary options online on Optionrally or Optionweb. Potential profits on this would be the difference between the $50 price to purchase the option and the $100 option value which will leave a $50 potential profit. Any risk would be limited to the $50 cost of the trade and offers a 1:1 reward to risk ratio which may be profitable provided there is a higher than 2085.00 close this week for the E-mini S&P 500 futures.

There are weekly, daily and even hourly expirations offered by Nadex which are based on a few factors which include both US and international energy metals, indexes as well as forex products. The range of expirations and products allow people many options when selecting a strategy and risk to reward profile that suits their view.

It is obvious that futures markets may be quite volatile; however, using Nadex’s binary options limits peoples risk to the amount paid when the trade was first started. Therefore, their stop-loss is built in already.

Keep in mind, you always have the choice to liquidate early should your trade begins working against you or in your favor. However, at expiration, only a single party either buyer or seller can get the $100 while the other gets nothing.

Take a look at the full list of all binary options sites.

oil_prices

The Reason Oil Prices are pointing towards being $35 a Barrel

As Wednesday hit, prior to rebounding, West Texas Intermediate futures, during a testing, came out at a low of $46.83 a barrel. This is a near 57% decrease from the $107.68 summertime high and is pointing in the direction of the depths that were seen last in the recession and financial crisis of 2008 that followed. There is a low $1.31 per barrel tested for wholesale gasoline futures.

In the past recent months, all angles have been covered for the energy price wipeout which includes the negative repercussions for corporate earnings, US economy and energy independence. There is now an increasingly turning focus on the damage and how bad it could possibly get.

Bank of America Merril Lynch new estimates pointed towards below $35 a barrel for the short-term floor. This is a drop that could indicate a near 30% decline from here with the market being a million oil barrels per day oversupplied. Option traders are beginning to set bets that there could be a drop in prices into the $20s in the following months.

It is obvious there is no quick reversal to come. There seems to be an earnest decision by OPEC to recapture the US market share of shale oil producers. Many of the oil exporting nations are stuck in what is called a prisoners’ dilemma; they yearn for higher prices but still feel the pinch in their national budgets. As far as Venezuela and Russia are concerned, their pain is strong and could end up leading to a total currency crisis. However, none of them wish to make any needed production cuts to balance out align supply with the undergoing economic demand which came about from economic weakness in Asia and Europe. Start trading oil with one of our top 10 binary options brokers.

With Japan slowly picking up pieces of its newest hike in sales tax, Europe stalling and China still trying to get a handle on its fixed asset investments and runaway housing without contributing to its bad debt issue, oil demand is hardly expected to absorb up any excess supply in the near future.

There is a component of negative self-reinforcement in the demand situation: Analysts of Bank of America Merril Lynch not that 50% of the growth of global oil demand of the last 10 years has been brought on from oil producing countries. This is an issue with the Middle East sucking into currency reserves and Russia pointing towards recession. Furthermore, it is assumed that any demand side response might come with a 6 month lag anyway.

Therefore, in order to find a price floor, there will need to be a cut in supply from areas that are outside of OPEC. According to the analysts, the large state owned oil producers are not a likely source since low cash production costs; price hedging, currency benefits and tax breaks have an impact on the price sensitivity of production. Currently, only the Kearl oil sands project of Canada is at risk with the price being close to $55 a barrel. However, its operator states there will be no shut down even in the event of a cash flow negative. The pre-salt fields of Brazil need around $23 to cover expenses.

This results in US shale producers having to carry the burden with the drying up of operating cash flows. However, with the occurrence of a natural gas flood a couple years back, also motivated by shale success, indicates that there will be a shifting of rigs by operators to more profitable fields prior to cutting output. This will result in US production cuts not occurring until the decline in newer investment, new rigs and new wells starting to flow in today’s production numbers. It will take time, however, it will happen.

Bringing in the Festive Season with Binary Options Trading Competitions by BigOptions

The exclusive trading competition for Christmas and New Year has been launched by BigOption. BigOption is offering its traders this festive season with a brand new trading binary options concept to bring in more thrills. This tournament offers the ability for traders to compete against one another and demark themselves as binary options trading champions. Over $10,000 in cash awards will be offered to the top 5 traders.

Launched on December 17, 2014, this competition will last until January 17, 2015. All competition winners will be announced on January 19, 2015. The biggest benefit of this competition is that new traders will not have to invest large amounts of money to enter. There is only a $500 minimum deposit required (take a look at Optionrally where the minimum deposit is only $250)

The platform on BigOption has a fully integrated leader-board page and requires no third party or download software in order to access the trading tournament. The rules for the competition are outlined thoroughly to maintain transparency and avoid any misunderstanding during the tournament. In order to join the tournament and participate, traders have to enter their credentials like their name on the platform. Once their account is active, they will find a big selection of trading tools to help maximize their winning trades. All levels of traders can adapt to the trading tools and experienced, expert traders will be there to offer assistance to help traders get higher scores, increase winning chances and generate profits.

Traders will have the ability to monitor the evolution of the competition through the leaderboard. The leaderboard list will include the top 15 leading traders and will include their initials, their ranking and their winning amounts. Other traders can check the ‘Check my Rank’ button to see how near they are to the leaders.

BigOption’s Marketing and Communications manager, Priscilla Camryn, is extremely happy about the tournament. She claims all efforts were invested into offering traders a platform that is secure for trading for the festive season. The intent was to reward the best performing traders for the Christmas and New Year season.

This is a huge encouragement for enthusiastic traders who are looking to really bring in the festive season with a bang. It is a huge one-time chance for traders to join in and secure the first 5 places and be rewarded up to $10,000 worth of cash prizes. BigOption’s officials will be monitoring the competition to ensure unbiased support and fair treatment.

oil_rafinery

US Stocks Slip Due to the Continuing Slump of Crude Oil

Since Monday, US Stocks have been slipping due to a big slump in the price of oil. The market is keeping a close eye on the Wednesday’s Federal Reserve meeting. The Dow Jones Industrial Average plummeted around 0.2% or 27 points to 17254. The Nasdaq Composite Index went down 0.4% or 16 points to 4637 and the S&P 500 index went down 0.1% or 1 point to 2001.

In the afternoon trading was when US stocks decreased the worst brushing off big declines in European stocks and emerging markets. In these particular regions, investors were looking for safety while anticipating the Federal Reserve meeting later this week where increased short-term interest rates can be signaled through officials. Indonesia and Russia currencies were hit Monday as well as Thailand and Malaysia. There was a 5% slide as well last week when there was a 2.2% drop in Europe’s Stox 600.

While oil prices continued to bounce off session lows, the midday recovery came. At $56.58 a barrel, crude oil dropped 1.2% and fell as much as 3.3% before 12pm. In June, the price of oil slumped from their highs during slow economic growth and global oil surplus concerns which has hurt demand.

According to Brokerage Firm ITG’s head of sales (see all regulated binary options brokers here), Brian Fenske, correlated trade like this continues while the S&P tends to be connected with crude oil prices. When compared to other sectors, the energy stocks in S&P 500 did much better. Traders state that some of the better-performing positions were being cut back by investors reaching the end of year.

In the S&P 500, the worst performing was utilities. Despite the 0.6% decline on Monday, year-to-date, they are up 19%. In addition, despite the increased 33% for the year, the Nasdaq Biotechnology index was 1.7% down on Monday. The Jones Trading Institutional Service’s head of exchange traded fund trading, Dave Lutz feels that even though there is an increase in concern to the investors of how fast oil is declining, he does not think it is the cause of any huge equity angst. Profits are being made.

When it comes to energy companies, they are rising with Exxon Mobil Corp at a 1.1% gain and Chevron Corp at a 0.4% gain. The Dow industrials experienced their largest weekly loss last week since November 2011, when the Eurozone debit crisis shook markets. During this week, the S&P 500 declined the most since 2012.

In light of that, US stocks, despite the losses of last week, still remain 5% below their average all-time highs. Although some investors feel the resurgence in market volatility caught them off guard, they still believe the decline in the price of oil will after a while; benefit the US economy by reducing the price of gas and boost spending.

Investors will most likely focus on the Federal Reserve meeting being held later this week. Participants will be ultimately looking for a reaction to the weak inflation and downturn in the price of oil and any hints on interest-rate increases.

If There Are Riots In New York, You Can Blame Ethanol And Index Funds

1 The Riots in New York are caused by unemployment among college graduates, at least that’s what Mayor Bloomberg is saying. The Riots in New York are caused by unemployment among college graduates, at least that’s what Mayor Bloomberg is saying [read full news]. If you are unaware this protest movement is called Occupy Wall Street and this movement ins against economic as well as social inequality not only in the US but worldwide.

The movement started in September 17th, 2011 and still receives social media and television coverage.
Published: Fri, 23 Sep 2011 17:51
Tags: If There Are Riots In New York, You Can Blame Ethanol And Index Funds
Thank you: necsi.edu

oil_prices

Oil’s Drop is “Overwhelmingly Great News” for Us Citizens

Oil costs are falling once again these days. OPEC’s Secretary General states again that the oil generating business is not going to reduce production regardless of the present rates as well as glut of supply taken from the U. S. and in other places. That is making supply abundant, prices low and usage amounts slowing down. Therefore, who stands to profit?

Writer of the Financial Times Alphaville weblog, Cardiff Garcia, says the affordable prices ought to benefit the middle class.

“A large drop in oil as well as the dropping fuel costs basically amounts to the same as actual salary gain or a large tax reduction. It’s arriving precisely at the best time. ”

Immediately after getting pummeled in the economic downturn the middle class are able to use the assistance. Less cash on the gas pump indicates more cash placed into their wallets. Equipped with extra money and less concerns regarding gas costs people are buying more and increasing store sales.

There are concerns that the quick speed and level of the drop might indicate a slowdown with regard to growing prospects within the power sector. Regardless if that is the situation, Garcia states it is not all bad news. It is a bit of a self-correcting system. This is precisely the type of reaction you do wish to offset the fallout. The actual drop itself is a great thing. ” The U S power growth continues to speed up but less expensive global costs might turn out to be challenging for some other exporting countries.

The supply aspect shock might impact Federal policymakers, who will get together for the last time in the next few days to settle on upcoming interest rate plan. The slip in oil costs makes their conclusion more difficult, as output as well as inflation tend to be moving in opposing directions. Garcia views this as being an opportunity of the Fed to help keep prices low.

“This is definitely a chance to keep policy slightly loose, for a bit longer. Until we all do notice signals that growth as well as inflation are receiving back up in direction of the target.”

With oil costs all the way down the power sector will be affected however the inexpensive gas costs will also provide the middle class a pleasant boost in cash after many years of decreasing earnings. You start trading oil, gold etc on the best binary broker sites.

Not everybody believes dropping oil costs are the ideal thing. Citi Research, a brand under Citigroup Global Markets, alerts that inexpensive oil as well as surpluses might reduce the necessity for U. S. export products. The company additionally says the short-term financial increase from inexpensive gas might trick the financial markets and actually generate fewer advantages for customers.

oil_prices

Could Reduced Oil Costs Mean Less Expensive Flight Seats?

Senator Chuck Schumer attempts to question in wake of dropping gas prices, should ticket costs be dropping? Senator Chuck Schumer claims that you are having to pay too much for your flight ticket home this Christmas season.

The New York Democrat released a declaration today stating costs should reflect the low fuel costs flight companies have been paying because of the decrease in oil costs.

“At a period when the price of fuel is rapidly declining and earnings are increasing, it really is inquisitive as well as confounding that ticket costs tend to be sky-high and defying financial gravity, ” he stated in the release. Therefore I am advocating the Feds to step up and do a cost analysis for customers who must purchase vacation travel seat tickets that may break their budget.

The industry frequently increases costs very quickly whenever oil costs surge, however they appear to not be modifying for the historic drop in the expense of fuel; ticket costs should not skyrocket like a missile and come down just like a feather.”

Oil costs are sitting at about $60 for each barrel, the cheapest they have been in many years. Schumer states that gas prices may account for as much as half of an airlines price, which means that the decrease in fuel costs might be having massive effects on their bottom lines.

A trade company representing the big US carriers, Airlines for America, said that declining fuel prices meant that airlines could invest again in the business, and that reduced fuel prices didn’t mean as much as Schumer said they were.

“While fuel costs have abated off their historical highs, fuel is simply 1 price, and it is vital that you remember that for the very first 9 months for the 9 widely traded U. S. traveler service providers, operating costs increased 3.1 % in 2014, ” the declaration reads.

“This is really a capital-intensive company, and flight companies are making substantial investments, such as taking delivery of 317 brand new airplanes this year by itself.”

Imperial Capital LLC’s airline analyst, Bob McAdoo, does not believe anything legislative can come from Schumer’s problem, observing that the federal government hasn’t managed the flight business beyond security regulations since the 1978 Airline Deregulation Act.

“From time to time the federal government has discussed re-regulating prices,” he states. “Every time it has been brought up it has been declined in the legislature.”

gold price

United States Budget Deficit Increase Impacts Gold Stocks and Shares

US public financial debt is the balance owed by the government when it comes to exceptional Treasury securities. The debt-to-gross domestic product or also known as GDP ratio is what displays just how much the nation owes when compared with just how much it makes. Traders make use of the ratio to calculate the country’s capability to make upcoming repayments on the financial debt.

This impacts the country’s funding expenses as well as federal government bond yields. So How Exactly Does Financial Debt or GDP Impact Gold Costs?

The primary concern in regards to growing financial debt is the fact that, since it rises beyond a particular point, the nation will need to increase taxes as well as reduces spending in effective areas in order to support the interest expenses. This would be unfavorable for financial growth. If financial prospects are not bright, people do not possess many options to fall back on. Precious metal and gold is among those choices.

Taking a Look at the Budget Balance

The budget balance is the distinction among what a country’s federal government makes from taxes along with other sources and the amount it spends. A budget deficit happens when investing surpasses revenue.

When investing surpasses revenue, the federal government borrows cash through the people. Additionally, it borrows cash through foreign entities. As this financial debt continues to accumulate, it is feasible that the value of the currency will certainly decrease. The currency decreases due to worries inside the worldwide community. Other nations question the country’s capability to pay back the debt.

Monitoring the Government Budget Balance

The United States Treasury reports the government budget balance month-to-month. The government ran a deficit of around $120. It was 7 billion dollars in October. It increased by just around 34% compared to the exact same month a year ago. But the actual increase was obviously a consequence of calendar changes rather than a deteriorating financial picture. A Treasury official stated the October deficit might have been $84 billion dollars, or even $6 billion less than the actual October 2013 deficiency, if not for the calendar changes.

The United States government’s budget year operates through October through September. The federal government completed the 2014 financial year having a budget deficit of around $480 billion dollars that is 29% less than the deficit in financial 2013. The Congressional Budget Office is expecting the yearly deficit to reduce once more in 2015. The deficit as a GDP or gross domestic product has really been decreasing.

Budget deficit’s Effect on All of US Financial Debt

The deficits still build up. They continue to keep contributing to the United States government financial debt. The federal financial debt has exploded since 2008. However the scenario gets much better. This will stay positive for the United States dollar. A strengthening United States dollar generally results in weaker gold costs.

It’s unfavorable with regard to EFTs or gold-backed exchange-traded funds such as the SPDR Gold Stocks (GLD). The deficit can also be unfavorable for stocks and shares such as Barrick Gold Corp (ABX), Goldcorp Inc. (GG), Kinross (KGC) and (NEM) or Newmont Mining Corporation. Additionally, it damages ETFs that purchase the above mentioned stocks and shares, such as the (GDX) or Gold Miners Index. If you are interested in trading gold online you should take a look at our top 10 best binary brokers page.

Predict the outcomes of events with Pivit

Wall Street adored making use of InTrade to forecast political election results; however government bodies took the betting website away a year ago. Today the individuals who developed InTrade are back again utilizing Pivit, a brand new application that brings together advanced algorithms, crowd sourcing as well as social gaming to forecast the results of occasions like elections. That type of service can be extremely ideal for traders, who are regularly told how much impact Washington might have on economic markets.

“The value to traders is a solution to decrease and distill anything happening on the globe to 2 digits which turns into a dependable gauge of belief, “stated Binary Event, Network’s co-founder, Gregory DePetris which Pivit, is operated from.

How it Works

Pivit is accessible to utilize free of charge on Apple’s (AAPL, Tech30) App Retail store and may ultimately be presented on the internet. People are requested to predict if the likelihood of a given function is going higher or lower than what the algorithms are presently predicting. For instance, on a Tuesday morning, Pivit had been predicting a 95 percent probability that the GOP may gain control of the United States senate after the midterm elections.

People who properly forecast the following move — higher or lower — are going to be honored with points.

The main distinction among Pivit and InTrade is the fact that people cannot place real wagers. This may satisfy government bodies, but may also make traders suspicious of the predictive clout Pivit uses. After all, people are not placing their cash where their forecasts are.

Simultaneously, new research demonstrates that pressuring people to put cash down doesn’t invariably enhance the quality of their forecasts. “If you are able to create some type of accountability — regardless of it being financial or reputational — then this system offers value,” explained ConvergEx Group’s, chief market strategist Nicholas Colas who is, a supplier of brokerage as well as trading services.

The newest service offers a reward system for people who make the correct prediction by utilizing gifts as well as leaderboards which compare their points with individuals they recognize and people from the exact same area. Consider an up to date day high score listing on a pinball machine.

Pivit will be teaming together with CNN, who owns this site, to offer forecasts about the 2014 midterm election. People may forecast the odds of the GOP overtaking the United States senate and the results of individual races such as Republican optimistic Joni Ernst’s attempt to replace the retiring Democrat Tom Harkin. A 90% chance of actually succeeding is given to Ernest.

Wall Street has already been noticing the new Pivit, which in turn raised $6 million in financing through Guggenheim Partners as well as Broadhaven Capital Partners.