#US West Texas Intermediate crude futures

[news-line-today]

Crude Oil Prices Advance Amid Rising Gaza Tensions and Saudi Arabia's Price Hike

In the world of oil trading, Monday saw a climb in futures prices as Saudi Arabia announced an increase in June crude prices for most regions. Concurrently, the possibility of a ceasefire deal in Gaza seemed distant, stirring concerns that the Israel-Hamas conflict might escalate further in this crucial oil-producing area.

Brent crude futures rose by 51 cents, marking a 0.6% increase to reach $83.47 per barrel, while US West Texas Intermediate crude futures also saw a rise, up by 53 cents to $78.64 per barrel, a 0.7% increase.

Last week, both Brent and WTI futures experienced their most significant weekly losses in three months. Brent fell over 7%, and WTI dropped by 6.8%. Investors grappled with weak US jobs data and speculated about the Federal Reserve’s potential interest rate adjustments.

As discussions around a Gaza ceasefire unfolded, the geopolitical risk premium on oil prices somewhat eased. However, hopes for an imminent agreement diminished on Sunday when Hamas reiterated its demand for war cessation in exchange for the release of hostages, a demand Israeli Prime Minister Benjamin Netanyahu swiftly rejected.

Monday brought further tension as Israel’s military urged Palestinian civilians to evacuate Rafah as part of a ‘limited scope’ operation. While the purpose behind this call remains unconfirmed, speculations arose about its relation to a possible ground assault.

Tony Sycamore, an analyst at IG markets, voiced concerns, stating, “News of Israel’s intentions to extend its operation into Rafah risks derailing a potential ceasefire agreement and reigniting Middle Eastern geopolitical tensions, which had shown signs of easing.”

With most long positions in oil cleared last week, the risks now seem tilted towards a rebound in WTI prices, possibly nearing the $80 mark early this week, as suggested by Sycamore.

Additionally, Saudi Arabia’s decision to raise the official selling prices (OSPs) for its crude in Asia, Northwest Europe, and the Mediterranean for June indicates expectations of robust summer demand, further bolstering prices.

Warren Patterson, Head of Commodities Research at ING, noted, “After a decline of more than 7.3% last week due to easing geopolitical tensions, ICE Brent has commenced the new trading week on a stronger note, opening higher.”

This development follows Saudi Arabia’s decision to increase June OSPs for most regions amidst a tightening of supplies this quarter.

In China, the world’s leading crude importer, service activity continued its expansionary trend for the 16th consecutive month. Growth in new orders and business sentiment surged, fueling hopes for a sustained economic revival.

In a potential sign of supply tightening, US energy companies reduced the number of oil and natural gas rigs operating for the second consecutive week. According to Baker Hughes, oil rigs fell by seven to 499, marking the most substantial weekly drop since November 2023.

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"What's unusual about this moment is that the oil market seems to be well supplied. Prices are relatively low, global demand is down and there really has been an increase in supply," Yellen said in an interview with Bloomberg TV.

The global oil markets are weighed down by ample supply and demand concerns, in part because of China's flagging economy. Analysts at Macquarie are forecasting a "heavy surplus" next year because of non-OPEC supply growth and "below-trend" demand growth.

International Brent crude-oil futures are down 4% year to date. US West Texas Intermediate futures are 1% lower over the same period.

"So the global oil market is softer, and that creates possibly an opportunity to take some further action," Yellen said.

Yellen said that she wouldn't preview any new sanctions but that the US would continue to put pressure on the Kremlin to end its war.

[starseedfxofficial]

The On-Balance Volume (OBV) Secret: A WTI Trader’s Hidden Edge When it comes to trading West Texas Intermediate (WTI) crude oil, most traders fixate on fundamental reports and price action, completely ignoring a powerful yet underrated indicator: On-Balance Volume (OBV). If you're relying solely on candlestick patterns or MACD crossovers, you might be leaving money on the table—or worse, catching falling knives. Let’s break down how OBV can give you an unfair advantage in WTI trading and how most traders completely miss this golden opportunity. Why Most WTI Traders Get It Wrong (And How OBV Changes the Game) If WTI trading were a game of poker, most traders would be playing blindfolded. They see price movements but miss out on the underlying volume dynamics. Think about it—imagine trying to determine a stock’s future by looking at just the price while ignoring institutional money flow. Sounds insane, right? Yet, that’s exactly what many WTI traders do. Here’s where On-Balance Volume (OBV) enters the scene like a secret weapon. Created by Joe Granville, OBV tracks cumulative volume changes to reveal if big money is accumulating or distributing an asset. Most traders focus only on price action, but OBV uncovers the hidden footprint of institutional traders—the whales moving millions of barrels behind the scenes. If you’re serious about trading WTI profitably, you must integrate OBV into your strategy. How to Use OBV to Predict WTI Moves With Precision 1. Spot Hidden Divergences Before Price Moves One of the most powerful aspects of OBV is its ability to predict reversals before they happen. Price and OBV should move in tandem. If price is making new highs, but OBV is lagging behind, it’s a clear signal that buyers are losing momentum. Example: - If WTI makes a higher high but OBV fails to confirm, a reversal could be looming. - Conversely, if WTI makes a lower low but OBV is rising, the selling pressure is likely exhausted, and a rebound is on the horizon. 2. Confirm Breakouts With OBV False breakouts are a trader’s worst nightmare—just like that time you thought you were getting a discount flight ticket, only to realize there were hidden fees. To avoid falling for fake WTI breakouts, OBV can act as your lie detector. Pro tip: If price is breaking resistance but OBV remains flat or declining, the breakout lacks conviction—avoid entering. But if OBV surges in tandem with price, the breakout is legit. 3. Identify Accumulation and Distribution OBV is a direct window into institutional money flow. If OBV rises while WTI remains in a sideways range, smart money is accumulating. When OBV starts dropping while price is still holding steady, institutions are offloading positions before retail traders realize what’s happening. Case Study: In mid-2023, WTI consolidated between $70-$75. However, OBV was steadily increasing, signaling heavy accumulation. When WTI finally broke out above $75, it skyrocketed past $85 in just weeks. The Ultimate OBV + WTI Strategy (Step-By-Step Guide) Want a simple yet deadly accurate WTI trading system using OBV? Here’s your step-by-step blueprint: - Identify Key Support & Resistance Levels - Mark major horizontal levels on your WTI chart. - Monitor OBV Behavior Near These Levels - If OBV is rising while WTI is testing support, institutions are buying. - If OBV is falling while WTI is near resistance, institutions are unloading. - Confirm Entries With OBV Trends - Long trade: Enter only if OBV is rising and price breaks resistance with high volume. - Short trade: Enter only if OBV is declining and price breaks support with weak buying pressure. - Set a Logical Stop-Loss - Place stops below key support (for longs) or above resistance (for shorts). - Take Profits at the Next Major Level - If OBV starts diverging, exit early to secure gains. The OBV Trading Formula Most Pros Don’t Talk About Want a more advanced approach? Combine OBV with Volume Weighted Average Price (VWAP) for sniper-like precision. - If OBV is rising and price is above VWAP, institutions are aggressively buying. - If OBV is falling and price is below VWAP, expect further downside. This combination helps avoid fake signals and pinpoint high-probability setups. Final Thoughts: The OBV Edge for WTI Traders On-Balance Volume is the insider’s secret weapon when trading WTI. While the majority focus on price action alone, OBV allows you to see behind the curtain and track institutional footprints. If you’re serious about taking your WTI trading to the next level, start integrating OBV into your strategy today. Want more elite trading strategies and insider techniques? Join our StarseedFX community for expert insights, real-time trade alerts, and a free smart trading tool to optimize your trades. 🔹 Join now: https://www.starseedfx.com/community —————– Image Credits: Cover image at the top is AI-generated Read the full article

[third-new]

Oil drops to one-week low amid uncertainty over Trump tariffs By Reuters

By Scott DiSavino (Reuters) – Oil prices fell to a one-week low on Wednesday as the market considered how US President Donald Trump's proposed tariffs could affect global economic growth and energy demand. Futures fell 29 cents, or 0.4%, to settle at 79.00 a barrel, while US West Texas Intermediate crude (WTI) traded 39 cents, or 0.5%, lower to settle at $75.44. That puts Brent down for the fifth…

[newtras]

Oil drops to one-week low amid uncertainty over Trump tariffs By Reuters

By Scott DiSavino (Reuters) – Oil prices fell to a one-week low on Wednesday as the market considered how US President Donald Trump's proposed tariffs could affect global economic growth and energy demand. Futures fell 29 cents, or 0.4%, to settle at 79.00 a barrel, while US West Texas Intermediate crude (WTI) traded 39 cents, or 0.5%, lower to settle at $75.44. That puts Brent down for the fifth…

[satrthere]

Oil drops to one-week low amid uncertainty over Trump tariffs By Reuters

By Scott DiSavino (Reuters) – Oil prices fell to a one-week low on Wednesday as the market considered how US President Donald Trump's proposed tariffs could affect global economic growth and energy demand. Futures fell 29 cents, or 0.4%, to settle at 79.00 a barrel, while US West Texas Intermediate crude (WTI) traded 39 cents, or 0.5%, lower to settle at $75.44. That puts Brent down for the fifth…

[ericalto]

Oil steady as investors watch Trump 2.0 policies By Reuters

By Arathy Somasekhar and Jeslyn Lerh SINGAPORE (Reuters) – Oil prices were little changed on Wednesday as markets weighed U.S. President Donald Trump’s declaration of a national energy emergency on his first day in office and its impact on supply. futures rose 9 cents to 79.38 per barrel at 0420 GMT, while US West Texas Intermediate crude futures (WTI) added 1 cent to $75.84. Contracts fell on…

[accapitalmarket]

Near-term rate cuts kept Wall Street afloat, crude oil retreats

US blue chips ended higher on Thursday, rallying late on amid Federal Reserve rate cut hopes, though tech issues took a tumble on caution ahead of earnings from the world’s biggest company, AI chipmaker Nvidia.

Investors were parsing speeches from Fed members on the prospects for further rate cuts. Federal Reserve Governor Lisa Cook said that future cuts would be dependent on incoming economic data. Meanwhile, Federal Reserve governor Michelle Bowman backed a cautious approach to rate cuts amid expectations that the neutral level or end point for rates may be higher than previously expected given that inflation has stalled in recent months.

Investors, however, continue to bet that US interest rates will fall in the near-term, with traders pricing in a 60.6% chance for a 25-basis point cut by the Federal Reserve in December

At the close in New York, the blue-chip Dow Jones Industrials Average was up 0.30% at 43,408, while the broader the S&P 500 index ended flat at 5,917, with both having rallied late on from earlier losses.

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But the tech-laden Nasdaq Composite remained weak, though it also ended well off session lows, down 0.1%, at 18,966.

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AI leader Nvidia, which has nearly tripled in value this year, fell 1.1% ahead of its results that were released after the closing bell. The stock dropped another 2.9% after-hours despite the chipmaker delivering third quarter revenue and profits above estimates and better-than-expected revenue guidance for the December quarter, with the figures not a complete blow-out.

Among other weak tech stocks in the session, Alphabet shed 1.3%, while Microsoft fell 1.6%, and Amazon.com lost 0.9%.

But Netflix sidestepped the weakness, adding 1.4% after announcing that last week's boxing bout between YouTube star Jake Paul and former world heavyweight champion Mike Tyson racked up 108 million global viewers, becoming the most-streamed global sporting ever.

And cryptocurrency stocks ticked higher as bitcoin reached a record high above $94,000, with MicroStrategy jumping 10.1% and MARA Holdings up 14.0%.

Away from tech, Target was the biggest casualty, plunging 21.4% after the retailer forecast holiday-quarter comparable sales and profit below Wall Street expectations following a third-quarter estimate miss.

The earnings missed triggered a sell-off by other retailers, with Home Depot down 1.7%.

But fellow home goods retailer Williams-Sonoma surged 27.5%, hitting a new all-time high, after boosting its full-year sales outlook and reporting a Q3 earnings beat.

Red Cat jumped 34.4% after the drone technology firm was selected by the US Army as the production provider for its Short Range Reconnaissance (SRR) Program of Record.

Among commodities, oil prices were lower as US crude stocks rose by more than expected last week, although the losses were capped by worries about the intensifying war between major oil producer Russia and Ukraine.

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UK Brent Crude was down 0.3%, at $73.11, a barrel, while US West Texas Intermediate crude fell 0.6% to $68.95 a barrel.

Meanwhile, analysts at broker Macquarie forecast that oil prices are shaping up to test new lows next year as the market appears to be pricing in a large crude surplus at a time when the demand outlook looks bleak.

Disclaimer: The information contained in this market commentary is of general nature only and does not take into account your objectives, financial situation or needs. You are strongly recommended to seek independent financial advice before making any investment decisions. Trading margin forex and CFDs carries a high level of risk and may not be suitable for all investors. Investors could experience losses in excess of total deposits. You do not have ownership of the underlying assets. AC Capital Market (V) Ltd is the product issuer and distributor. Please read and consider our Product Disclosure Statement and Terms and Conditions, and fully understand the risks involved before deciding to acquire any of the financial products provided by us. The content of this market commentary is owned by AC Capital Market (V) Ltd. Any illegal reproduction of this content will result in immediate legal action.

[yourreddancer]

Falling oil prices may help push gas below $3 a gallon for the first time since 2021 U.S. benchmark oil prices dropped more than 6% on Monday

Oil prices dropped significantly on Monday, offering U.S average gasoline prices at the pump another reason to drop below $3 a gallon for the first time since 2021, especially with just over a week left before the U.S. presidential election.

There is “no real catalyst in sight for gasoline” prices to rise, said Tom Kloza, global head of energy analysis at OPIS, a subsidiary of MarketWatch publisher Dow Jones.

Refineries are in the seventh or eighth inning of turnaround season, he said, implying the end of the season when refineries typically perform planned shutdowns for maintenance and upgrades. Global markets are also “plentiful” in supply, and demand for U.S. gasoline tends to slip a bit into November.

On Monday afternoon, the average price for a gallon of regular unleaded gas was at $3.08, down nearly 13 cents from a month ago and almost 40 cents below a year ago, GasBuddy data show.

As long as crude prices stay low, and there are no disruptions in refining capacity due to geopolitical or weather-related events, gasoline prices should “remain stable,” said Rebecca Babin, senior energy trader at CIBC Private Wealth US.

Crack spreads, the difference between prices of crude oil and the products make from it such as gasoline, have “decreased significantly since the summer, so prices are unlikely to drop much further, but they’re also unlikely to spike ahead of the election,” she told MarketWatch.

Oil’s drop

A more than 6% drop in oil prices Monday could help to exacerbate the fuel’s price decline.

“The possibility, but not probability of a wider theater of war” wasn’t really a compelling reason to buy oil futures in the first place, and the market was seeing that play out Monday, said Kloza.

On Saturday, Israel stuck military targets in Iran, marking the first time Israel’s military has openly attacked Iran. The move was in retaliation to Iran’s missile strike on Israel on Oct. 1.

The Islamic Republic said the attack caused “limited damage” and Iran issued a statement suggesting that any cease fire in Israel’s ground offensive in the Gaza Strip and Lebanon would outweigh any possible retaliatory strike on Israel.

“Many traders anticipated that Israel would avoid targeting energy-related infrastructure, but the risk of misjudging this was simply too high,” said Babin. That kept much of the market on the sidelines.

Israel’s move was seen as “de-escalatory” and gives Iran an “off ramp and potential for tensions to calm,” she told MarketWatch. Now that the risk has passed, “there’s increased conviction in short positions, leading to greater selling pressure.”

Against that backdrop, oil prices settled sharply lower Monday.

U.S. benchmark West Texas Intermediate crude for December  fell by $4.40, or 6.1%, to settle at $67.38 on the New York Mercantile Exchange, after a drop to an intraday low of $66.92. Nymex futures for reformulated gasoline dropped along with oil, with the December contract 

 down 11 cents, or 5.4%, to finish at $1.97 a gallon on Nymex, settling below $2 for the first time in October.Front-month WTI oil futuresSource: FactSetAs of Oct. 31, 10:10 p.m. ET

Even before the weekend developments, some forecasts called for supply to outpace demand in 2025.

“Almost anyone without a vested interest believes that supply will easily outpace demand next year” for oil, said Kloza. With that in mind, “there is no compelling reason to buy crude in 2024.”

There’s more than enough oil supply to meet global demand, he said.

Countries such as Saudi Arabia and Iraq will have more crude to export now that temperatures in the Middle East are moderating — some 500,000 barrels to 700,000 barrels per day of crude gets burned by Middle East utilities in the summer and that demand fades with the calendar, Kloza said.

If the Organization of the Petroleum Exporting Countries and it allies, together known as OPEC+, begin to gradually reverse their production cuts as planned in December, there could really be a “strong downward trend in oil,” Kloza said adding, however, that he is not convinced that OPEC+ will start reversing the cuts in December.

Election impact

Gasoline prices at the pump can be an important factor as citizens vote in the U.S. election next week.

It’s too difficult to know at this point if the falling oil prices will be significant enough to impact the outcome of the election, said Patrick, De Haan, head of petroleum analysis at GasBuddy.

There’s a lot of “potential context,” but Monday’s oil prices “haven’t been around long enough to really change the calculus” significantly for gasoline, he told MarketWatch.

Early Monday in a press release, De Haan had pointed out that the national average for gas prices fell for a a second straight week, in part due to a drop in oil prices as Israel avoided attacks on Iran’s oil infrastructure, but also due to seasonal decreases in demand, “as is normal for this time of year.”

The median price for U.S. gas prices fell to $2.99 a gallon on Monday, and the national average is likely to soon fall below $3 as well, according to GasBuddy. The U.S. hasn’t seen a sub-$3 a gallon national average since 2021.

Gas prices have been far below record levels, and today’s prices have been “low enough to not be a much talked about issue,” he said. “No matter who is elected, I do expect the seasonally low gas prices to continue into the spring when they will start their seasonal rise.”

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Tokyo leads Asian stocks rally

Asian stock indexes rose and the dollar hit a new seven-week high against the yen on Monday after unexpected US labour market data dispelled fears of recession and spurred a sharp rate cut.

US Treasury yields hit two-month highs, extending their gains after a closely watched non-farm payrolls report on Friday showed the economy unexpectedly added the most jobs in six months in September.

Crude oil prices fell from a one-month peak even as Israel bombed targets in Lebanon and Gaza. Monday marked the one-year anniversary of the Hamas attack that sparked the war.

Japan’s Nikkei (.N225) index, open new tab, led gains in regional shares, up 2.28 per cent as of 05:15 GMT, helped by a weaker yen.

Hong Kong’s Hang Seng (.HSI), open new tab rose 1.45 per cent, Australia’s stock benchmark (.AXJO), open new tab added 0.68 per cent and South Korea’s Kospi (.KS11), open new tab gained 1.53 per cent. Mainland Chinese stocks remain closed until Tuesday due to the Golden Week holiday.

MSCI’s broadest index of Asia-Pacific shares (.MIAP00000PUS), open new tab, climbed more than 1 per cent.

US Dow futures were slightly lower after the money index closed at a record high on Friday following the release of payrolls data.

On Monday, the yield on 10-year US Treasuries hit 3.992% for the first time since August 7. Two-year bond yields rose to 3.965%, a level last seen on August 22. That sent regional bond yields higher, while the yield on 10-year Japanese government bonds hit its highest level since August 6 at 0.915%.

Gold fell 0.35% to $2,643 an ounce amid the dollar’s recovery, although it remained not far from last month’s record peak of $2,685.42.

Brent crude futures fell 35 cents to $77.70 a barrel after hitting $79.30 on Friday, the highest since 30 August. US West Texas Intermediate crude futures fell 25 cents to $74.13. They rose to $75.57 on Friday, the highest level since August 29.

Analysts believe that many of the factors that pressured the US dollar over the summer have changed. In particular, recession fears are waning, and price dynamics show that the limits of the dovish reaction function pricing have been reached with this data.

MUFG noted that this is the second time the dollar index has pulled back to the 100.00 support level in recent years. The last time in July 2023, the dollar index tested that level but failed to break below it before posting a strong 7.8 per cent bounce.

The yen fell slightly to 149.10 per dollar, its lowest level since August 16. It then trimmed losses and is trading around 148.40. This followed last week’s more than 4% decline, the biggest weekly percentage drop since early 2009.

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[coffeefranchisehub]

Is Coffee Traded More Than Oil?

Coffee is one of the most popular beverages in the world. Millions of people rely on it to kickstart their mornings and boost their productivity. But beyond its delicious aroma and flavor, coffee is also a significant commodity in the global market. Many people wonder how it compares to oil, one of the most traded commodities worldwide. In this article, we will explore whether coffee is traded more than oil, looking at various factors that influence both commodities, their trading volumes, and their impact on the global economy.

The Coffee Market: A Global Perspective

Coffee is not just a drink; it is a multi-billion-dollar industry. The global coffee market is vast, involving numerous players, including farmers, exporters, importers, and retailers. According to the International Coffee Organization, global coffee consumption reached over 166 million 60-kilogram bags in the 2020-2021 coffee year. This figure reflects a steady increase in demand for coffee, particularly in emerging markets.

Types of Coffee Beans

There are two main types of coffee beans: Arabica and Robusta. Arabica beans are known for their smooth flavor and aromatic qualities. They account for about 60-70% of global coffee production. Robusta beans have a stronger, more bitter flavor and are often used in espresso blends. Understanding these types of beans is essential for grasping the dynamics of the coffee market.

Coffee Production

Coffee is grown in over 70 countries, primarily in tropical regions. The top coffee-producing countries include Brazil, Vietnam, Colombia, and Indonesia. Brazil alone accounts for about one-third of the world’s coffee production. The geographical conditions, climate, and farming practices in these regions significantly affect the quality and quantity of coffee produced.

Coffee Trading

Coffee is traded on various exchanges, including the Intercontinental Exchange (ICE) and the New York Mercantile Exchange (NYMEX). Futures contracts are a common way to trade coffee. These contracts allow buyers and sellers to lock in prices for future delivery. This trading helps stabilize prices and allows producers to hedge against price fluctuations.

Factors Influencing Coffee Prices

Several factors can impact coffee prices, including:

Weather Conditions: Droughts, floods, and other adverse weather events can reduce coffee yields, leading to higher prices.

Global Demand: Changes in consumer preferences and trends can drive demand for coffee, influencing prices.

Currency Fluctuations: Coffee is usually priced in U.S. dollars. Therefore, currency fluctuations can impact the purchasing power of coffee-importing countries.

Production Costs: Rising labor and production costs can affect the price of coffee. Farmers may need to increase prices to cover these costs.

The Oil Market: A Global Perspective

Oil is another crucial commodity traded worldwide. It powers vehicles, heats homes, and is a key ingredient in many products. The oil market is complex, with numerous factors influencing prices and trading volumes.

Types of Oil

There are various types of oil, including crude oil, gasoline, diesel, and jet fuel. Crude oil is the primary commodity traded in global markets. It is further divided into two main categories: West Texas Intermediate (WTI) and Brent crude. WTI is primarily traded in the United States, while Brent crude is used as a benchmark for oil prices worldwide.

Oil Production

Oil is produced in numerous countries, with major producers including the United States, Saudi Arabia, Russia, and Canada. The production levels in these countries can greatly influence global oil prices. For example, decisions made by the Organization of the Petroleum Exporting Countries (OPEC) regarding production levels can significantly impact supply and prices.

Oil Trading

Oil is traded on various exchanges, including the New York Mercantile Exchange (NYMEX) and the Intercontinental Exchange (ICE). Futures contracts for oil are widely used, allowing traders to speculate on future price movements. This trading activity is often influenced by geopolitical events, economic data, and changes in supply and demand.

Factors Influencing Oil Prices

Several factors can impact oil prices, including:

Geopolitical Events: Conflicts in oil-producing regions can lead to supply disruptions and price spikes.

Economic Growth: Strong economic growth can increase demand for oil, pushing prices higher.

Technological Advances: Improvements in extraction technologies, such as fracking, can lead to increased oil production and lower prices.

Global Policies: Regulations aimed at reducing carbon emissions can impact oil demand and prices.

Comparing Coffee and Oil Trading Volumes

When comparing coffee and oil trading volumes, it is essential to consider several aspects. Both commodities are vital to the global economy, but they are traded in different quantities and contexts.

Coffee Trading Volumes

Coffee trading volumes are substantial but relatively small compared to oil. According to the International Coffee Organization, around 9.9 million tons of coffee were traded globally in 2021. The trading volume on exchanges like ICE for coffee futures contracts can reach several hundred thousand contracts per day during peak trading periods. However, the overall value of the coffee market is dwarfed by that of oil.

Oil Trading Volumes

Oil trading volumes are significantly higher than those of coffee. The global oil market sees billions of barrels traded daily. In 2021, the total volume of crude oil traded globally was approximately 11 billion barrels per day. This staggering figure highlights the importance of oil in the global economy and its role as a primary energy source.

Market Capitalization

The market capitalization of coffee is also much lower than that of oil. The global coffee market is estimated to be worth around $100 billion, while the oil market is valued at over $2 trillion. This difference in market size further illustrates the disparity between the two commodities.

The Importance of Coffee and Oil in the Global Economy

While coffee is an essential commodity, oil has a more significant impact on the global economy. Oil is the backbone of many industries and plays a crucial role in transportation, manufacturing, and energy production. Changes in oil prices can have widespread effects on inflation, economic growth, and consumer behavior.

Coffee’s Role in the Economy

Coffee plays a vital role in the economies of many producing countries. It provides employment for millions of people and is a key export for countries like Brazil and Colombia. The coffee industry supports farmers, traders, and retailers, contributing significantly to local economies.

Oil’s Role in the Economy

Oil, on the other hand, is a cornerstone of the global economy. It fuels transportation, powers industries, and is a critical component of countless products. Fluctuations in oil prices can affect everything from transportation costs to the price of goods in stores. This interconnectivity highlights the importance of oil as a commodity.

Conclusion

In conclusion, while coffee is an essential and widely traded commodity, it does not surpass oil in terms of trading volumes or overall economic impact. The coffee market is significant, providing livelihoods for millions and contributing to local economies. However, oil remains the dominant force in global trade, influencing economies and markets on a larger scale.

Coffee and oil serve different purposes in the global economy. Each has its unique characteristics, trading patterns, and factors influencing prices. Understanding these differences is crucial for anyone interested in the commodities market.

In the end, both coffee and oil are vital to the global economy. They highlight the complexities of trade, consumption, and market dynamics. As consumers, we may enjoy a cup of coffee while driving a car powered by oil, demonstrating the interconnectedness of these two important commodities.

[starseedfxofficial]

Yearly WTI Trends Revealed: Insider Secrets for Smarter Oil Trading The Yearly WTI Game Plan: Secrets Even the Pros Don't Talk About Imagine trying to buy a year's supply of coffee and discovering the price changes every single day. Welcome to the world of crude oil trading! Specifically, WTI (West Texas Intermediate), which is the heartbeat of oil prices and impacts everything from gas prices to your favorite avocado toast. But what if I told you there are yearly patterns hidden beneath the surface—patterns that most traders overlook, even the experienced ones? Grab a mug (hopefully not a year's supply of coffee) because we’re diving into WTI's yearly trends that can revolutionize your trading strategy. The Unseen Yearly Rhythm of WTI Most traders approach WTI like it's a moody friend—always changing and impossible to predict. But here's the hidden secret: WTI follows a yearly rhythm, like a song stuck on repeat. Just like how the best time to buy winter jackets is in spring, there are times of the year when WTI tends to peak or dip based on historical data. Analyzing this gives you a strategic edge that can mean the difference between profits and regrets. According to a study by the U.S. Energy Information Administration (EIA), WTI prices are historically higher in late spring and early summer. The reason? Increased gasoline demand, vacations, and a whole lot of people hitting the road. By the time fall rolls around, prices often dip, thanks to refinery maintenance and lower demand. Knowing this rhythm is like having insider knowledge of when the store's going to put your favorite sneakers on sale. "But here's where the real magic happens..." It’s not just about knowing the peak and dip seasons; it’s about timing your entries and exits to profit from these cyclical movements. Let’s dig into some practical tactics you can use to leverage these yearly trends. Seasonal Spread Trading Ever heard of spread trading? No, it’s not the new avocado toast variety—it's an advanced trading strategy that helps minimize risk. Seasonal spread trading with WTI is a hidden gem even many pro traders overlook. You take advantage of the price difference between contracts of different months. For instance, buying a cheaper contract now and selling a more expensive one later (hint: remember that summer spike). This way, you profit from the seasonal changes while minimizing the exposure to unpredictable day-to-day volatility. And let’s add a bit of humor here—spread trading is like buying Christmas gifts in July and selling them at holiday prices to all the late shoppers. It sounds unconventional, but it’s a proven way to gain an edge when dealing with WTI. The Green Energy Wildcard Most traders focus on OPEC meetings or U.S. inventory reports, but there’s an undercurrent that’s changing the game—renewable energy trends. We know what you’re thinking, "What does solar energy have to do with my WTI trades?" Well, a lot, actually. The increasing push for renewable energy is influencing investor sentiment around crude oil. Every year, as governments announce new climate initiatives or push electric vehicle adoption, WTI futures react, often shifting investor focus from long-term bullish to bearish. This wildcard can be your secret weapon. Imagine being able to anticipate price moves because you understand that a major country is implementing a renewable energy policy next quarter. Suddenly, those yearly WTI trends look a lot more predictable, don’t they? Why Most Traders Get It Wrong (And How You Can Avoid It) One major mistake traders make is treating WTI like a one-size-fits-all asset. They think, "If it worked in January, it'll work in August." But oil markets have more mood swings than my uncle when he misses his afternoon nap—and for good reason. Different geopolitical factors, demand cycles, and even hurricanes can shake the market. Here’s a myth-busting fact: despite common belief, crude oil doesn’t always respond directly to inventory changes. Sure, a drop in inventories might signal higher prices, but if it happens during a seasonal maintenance period, demand might not follow through. It’s like trying to sell ice cream in winter—there’s just no demand. Knowing when demand will sync with these inventory reports is where elite traders separate themselves from the herd. How to Predict Market Moves with Precision Wouldn't it be great if we had a crystal ball? Unfortunately, I left mine in the 90s along with my collection of trading cards. But the next best thing is understanding leading indicators that can predict WTI price shifts. For instance, the U.S. rig count often gives a glimpse into future supply trends. If the rig count is rising steadily, it usually means higher future supply, putting downward pressure on prices. Another advanced tactic is tracking CFTC’s Commitment of Traders (COT) report. This gives you insights into what the big institutional players are doing—are they adding to long positions, or are they betting on a drop? Aligning your trades with the big boys can help you ride the wave instead of getting caught under it. The Smart Money's Secret Weapon: Hedging and the Yearly Dance If you’ve ever felt like WTI trades can be like dancing with a clumsy partner—one wrong move, and you're stepping on toes—you're not alone. Smart traders hedge their bets, quite literally. Hedging during specific periods when volatility is expected (like hurricane season in the Gulf of Mexico) can save your portfolio from being blown away. Think of hedging as wearing protective gear during a contact sport—sure, you can play without it, but why risk it when you know things could get rough? A Yearly Trading Plan To capitalize on WTI’s yearly movements, you need a plan—a free trading plan can help you set goals, manage risks, and track progress. We offer one at StarseedFX's Free Trading Plan, designed specifically to help traders make sense of cyclical markets like WTI. Start by identifying key seasonal trends, set alerts for significant news, and be ready to adjust your plan if the fundamentals change. In addition, join our StarseedFX Community for live trading insights and daily alerts. The community is buzzing with expert analysis and real-time alerts to help you stay ahead of the curve. The Ninja Tactics for Yearly WTI Trends Trading WTI is not about timing the market with perfection—it’s about using yearly patterns, insider tactics, and a whole lot of smart planning to make the market work for you. Whether it's mastering seasonal spread trading, leveraging the green energy wildcard, or dancing with smart money through hedging, the key is to stay one step ahead by thinking differently. So next time you're looking at a WTI chart, don’t just see the ups and downs—see the rhythm, feel the dance, and, most importantly, trade like you've got the inside scoop. If you want exclusive strategies, don’t forget to check out our Forex Education resources for more of these hidden gems. Let’s turn those charts into profit opportunities! —————– Image Credits: Cover image at the top is AI-generated   Read the full article

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Oil slips as investors eye Trump's move on Russian export routes By Reuters

By Florence Tan SINGAPORE (Reuters) – Oil prices fell on Monday as U.S. President Donald Trump eased curbs on Russia's energy sector in exchange for a deal to end the war in Ukraine amid concerns over the disruption of tough sanctions. Futures fell 28 cents, or 0.35%, to $80.51 a barrel by 0739 GMT after closing up 0.62% in the previous session. The most active US West Texas Intermediate crude…

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Oil slips as investors eye Trump's move on Russian export routes By Reuters

By Florence Tan SINGAPORE (Reuters) – Oil prices fell on Monday as U.S. President Donald Trump eased curbs on Russia's energy sector in exchange for a deal to end the war in Ukraine amid concerns over the disruption of tough sanctions. Futures fell 28 cents, or 0.35%, to $80.51 a barrel by 0739 GMT after closing up 0.62% in the previous session. The most active US West Texas Intermediate crude…

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Oil slips as investors eye Trump's move on Russian export routes By Reuters

By Florence Tan SINGAPORE (Reuters) – Oil prices fell on Monday as U.S. President Donald Trump eased curbs on Russia's energy sector in exchange for a deal to end the war in Ukraine amid concerns over the disruption of tough sanctions. Futures fell 28 cents, or 0.35%, to $80.51 a barrel by 0739 GMT after closing up 0.62% in the previous session. The most active US West Texas Intermediate crude…