Saudi Arabia Not Budging on Oil Price

December 8, 2015
Saudi Arabia Not Budging on Oil Price August 21, 2018 Clive Nelson

Crude OilIt is looking more and more likely that the world is being given something of an early Christmas present from Saudi Arabia, for they are currently refusing to budge in regards to the amount of oil they produce each day.

This has led to there being a massive oversupply of oil and as such that has led to one of the biggest oil price drops in recent years.

Which is likely to last well into the New Year and keep the cost of petrol and diesel at the forecourts low. When there is usually an oversupply of oil the main oil producing countries usually reign in production and keep the market price for oil stable.

However that is currently not the case as all oil producing nations do have to agree to cut production which is something Saudi Arabia is flatly refusing to do.

So as a Binary Options trader this current situation has possibly left you wondering just what options are going to be worth a small punt on if the cost of crude oil remains as low as it is. Well it is certainly going to be the oil related companies and businesses that are going to be suffering in the weeks and months ahead as will petrol and diesel retailers.

There will however be some companies who are going to benefit from the drop in regards to oil, haulage firms are usually the first to start seeing something of an instant increase in their profits when the cost of oil drops, so do keep some of those companies in mind if you do fancy making a few Binary Options trades in the weeks or months ahead.

Also one thing to note is that you may thing airlines are going to also benefit from a drop in the price of oil, well they will do over the long term, however most airlines now lock in and secure the cost of their fuel long in advance and as such any immediate drop in the cost of oil is not usually going to affect airlines straight away.

Retailers may also see some major benefits in regards to the lowering of the price of fuel, for that will of course mean their customers will have more cash in their pockets to spend in their shops and also the cost of distributing the goods sold in retail outlets will now be much lower.

About the Author

Clive Nelson

Clive Nelson Author

Hi, my name is Clive Nelson and welcome to Traders Bible. Just to tell you bit about myself…I have been trading FX and binary options for the best part of 10 years now. After graduating with honours in economics, I began working for an investment bank in New York as an assistant trader before working my way up. After a few years, I went on to work as a broker in London, England and then eventually came back to the U.S to work in a hedge fund, where I manage $800 million of my clients’ investments. There have been times over the course of my career where I’ve had to take a hit, but I’ve accepted that losing is part of the game, it’s a learning curve. I’ve learnt from my mistakes and you don’t have to make the same errors I did. A lot of my education came from when I was a broker and this is why I’m here to tell you that Traders’ Bible offers you the foundations of how to become a great trader.

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