Is it the Heyday of Oil Trading?
The global oil industry includes the process of exploration, extraction, refining, transportation, and sale of petroleum products. Oil products account for a large portion of the world’s energy consumption. According to the Energy Information Administration, the world consumes over 30 billion barrels of oil per year, with the most developed nations being the largest consumers. The global oil industry as a whole represents the world’s largest industry in terms of a dollar value.
Because of this, it’s no surprise that oil is consistently one of the most talked about subjects in futures trading. If you’re one of the many traders that keeps a close eye on CNBC or Bloomberg throughout the day, you’re probably well aware that the oil market is covered more than any other commodity out there. Traders are attracted to oil not only because of its notorious price volatility, but also due the amount of supply/demand data released on a weekly basis. The amount of easily accessible data that the Energy Information Administration (EIA) and the American Petroleum Institute (API) releases throughout the week can keep even the most novice at-home trader up to date on all the most recent changes & developments in the oil complex.
The popularity of trading oil futures has grown wildly since its inception in 1984 on the NYMEX exchange. Our graphic below compares the average daily Volume & Open Interest in recent years.
If you’re interested in crude oil futures, or the energy complex as a whole, contact one of our knowledgeable market strategists: email@example.com.