Oil is the granddaddy of all energy commodities. Energy speculators can send the market soaring or falling in seconds. There are two main types of oil; these are Brent Sea oil or UK oil and WTI or West Texas Intermediate, which is the oil product from the US. In the CDF market, oil is one of the most heavily traded contracts. Oil responds to a range of fundamental data, such as OPEC news or the weekly inventory report.
Crude oil is a natural and liquid commodity found in rock formations in the earth’s core. Oil wells are essential in the extraction process, as they are formed to release oil from deep within the earth. Oil is a necessary commodity that we make use of every day once it has been refined into petroleum products, such as petrol and gasoline.
The CFD oil squeeze is a great way to take advantage of the two main oil contracts. It involves the difference between a price that emerges in the market where squeezes are observed and a price assessed in another market where there is insufficient liquidity. A squeeze has a bearing on the movements of both forward and dated prices.
The management of information supplied to the price assessor does not always, but on occasions may have a bearing on the assessment. The point is not whether participants are always successful with their squeezes or whether they actually attempt to influence the price assessor. The point is that squeezes do occur and that methods can be devised and tried if somebody wishes to test his/her luck to influence the assessment.