Energy products CFD trading

Energy Products Trading

Trade oil and energies on the popular MetaTrader 4 or MetaTrader 5 platform and benefit from:

  • Leveraged trading
  • Auto trading solutions, including Expert Advisors and copy trading
  • Competitive spreads
  • Technical and Fundamental Analysis and educational materials
  • Get 24/5 technical support

Start trading oil and energies with Friedberg Direct and enjoy the benefits of trading with a regulated Canadian broker!

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An advantage of trading commodity CFDs such as crude oil with Friedberg Direct is the benefit of trading freely without owning the actual asset. This gives you the flexibility to trade against the price movements without having to buy or sell the actual instrument.

If you believe the price will go up or down, your profit and loss in trading CFDs is decided and calculated by the difference in the price at which you buy or sell.

A trader can also benefit from a short position, which is when a trader sells at a given price with the intention of purchasing at a lower price at a later date.

Exchanges in oil trading and market hours
Exchange  Trading Hours (GMT Time)
NYMEX 22:00-20:59
CBOT 00:00-12:44 & 13:30-18:14
ICE US 07:30-16:59
ICE EUROPE 00:00-21:59
COMEX 22:00-20:59

What is Petroleum

Crude oil, sometimes mistakenly referred to as petroleum, is a fossil fuel. It is formed from the remains of plants, algae, and bacteria. During millions of years of extreme heat and density, they were transformed into carbon-rich resources, which are the raw material for fuel and other products.

Petroleum is a mixture of hydrocarbons and paraffin, in some cases, and other aromatics and cycloparaffins. Usually found in deep rock strata but sometimes near the earth’s surface, when mined and refined, hundreds of petrochemicals are extracted and used to produce many different products.

Crude petroleum is made of approximately 80% carbon compounds, and a combination of hydrogen, nitrogen, oxygen, and sulphur.

Oil Demand

Transportation Sector: Most of the oil demand today and in the future comes from the road transportation sector (based on the World Oil Outlook – WOO). In 2015 it accounted for 45% of the overall demand, and this is expected to remain at this mark until 2040.

The second largest contributors to oil demand are the construction and mining industries consisting of iron, steel, glass and cement production. Following these comes the sectorial industry, which is expected to slow down as the world moves closer to a service-oriented economy.

The fourth sector demanding the most oil is made up of the residential/commercial/agriculture industries, which account for about 11%. This industrial demand is expected to remain the same over the next 20 years.

Other industries, such as aviation, are expected to grow, while demand in the electricity generating sector should remain as is starting around 5.3 mb/d, but in the long run, expected to decline.

Despite slower economic growth, China is forecast to increase demand for oil in the coming years. And India is becoming the world’s fastest growing consumer of oil with rising incomes and a rising numbers of cars. In Brazil, more oil will be required since this country is a leader in the chemical market and production of polyethylene, the main raw material for plastic production.

Start trading oil and energies with Friedberg Direct and enjoy the benefits of trading with a Canadian regulated broker!

Friedberg Direct Offers the Following Oil and Energy CFDs:

What Influences the Oil Market Price

Oil prices change daily and are determined by traders who bid on oil futures contracts. These contracts are agreements that give traders the right to purchase oil at a set price based on the projection made. Both the buyer and seller set delivery dates in the future at set prices.

There are several factors that traders consider.

  1. Oil Demand: Estimates are provided by the Energy Information Agency; seasonal considerations are taken into account. As demand increases the price should go up.
  2. Current Supply: OPEC supply and US shale oil production are analyzed. As supply increases, the price should go down.
  3. Access to future supply: This depends on oil reserves in US refineries and the rest of the world. These reserves can be retrieved easily if prices get too high.
  4. World Crisis: A potential crisis could increase oil prices, since traders worry that war or famine, for example, could limit overall supply.
  5. Man-made and natural disasters such as hurricanes, floods, and oil spills can all influence the price of oil and the world supply of oil.
  6. Currency strength: Most Energy products are priced in USD, and thus it would be wise to monitor the dollar index in order to better forecast the price dynamics.

For new and experienced traders interested in trading energies and oil, Friedberg Direct has many additional services and benefits to help you get started. Educational tools, including our Trading For Beginners articles to help you succeed.  Don’t forget to check out the CFD Rollover dates to know when the current energy contracts expire.

Trade Energy Commodities with your number one regulated broker today and enjoy the various benefits we provide.