Crude Oil

Crude oil presents another major fundamental force in the world markets that binary option traders need to follow. Essentially, the demand for oil is based on global growth. If more growth is expected, more oil will be needed. Oil price valuation becomes a basic relationship between supply and demand. Surprise supplies dampen the price, and surprise shortages increase the price. Oil prices also increase when there is a global crisis, particularly a crisis centered in the Middle East, since that region produces the majority of the world’s oil supplies. The recent Middle East revolts in Egypt and Libya had the effect of increasing oil prices as well as their volatility. Libya’s effect on oil prices is particularly interesting since it accoun....Figure 4.22