If you’re a serious investor who wants to keep up-to-date with real-time market news and top analysis, like experienced Wall Street traders and best-selling expert authors, then Twitter is the place to go. On this social media feed, you’ll find valuable, timely and actionable information on the crude oil market, from the experts who regularly tweet about it. This guide will take you through four of the tips from the world of Twitter, that you can put into action on the oil trading market.
- Analytical charts from the US Energy Information Administration
When trading oil, it is a must to be following the US Energy Information Administration (EIA) on Twitter. The EIA consistently tweets about helpful market analysis and numbers in easily accessible charts and graphs. The indicators they use related to energy inventories and supply, can help predict and influence the action investors take in trading oil.
For example, on 16th January 2021, the EIA tweeted, with a corresponding graph:
“U.S. #oil and #naturalgas production to fall in 2021, then rise in 2022.”
This was part of their Short-Term Energy Outlook report. With recent supply and demand issues as a result of the pandemic and production caps from the Organization of Petroleum Exporting Countries (OPEC), a predicted rise in supply for 2022 can be a welcome tip for investors looking to the future of oil trading.
- Free articles from CFD brokers to help you expand your crude oil knowledge
CFD trading platforms, like Plus500, not only tweet tips and advice, but also post about the free information they provide on their website. With a direct link in their tweets, you can take full advantage of the free articles to improve your understanding of the different key oil benchmarks such as West Texas Intermediate (CL), Brent Crude (EB) and Gasoline (RB), as well as read more about crude oil trading with Plus500. A handy tip is to search Twitter using the relevant hashtags for each oil asset.
- Learn about the impact of global events on the oil market from news organisations
Geopolitical events have the potential to affect the rise and fall of the price of oil, as both production and traders react to global incidents. Following a reputable, newsworthy account on Twitter can ensure that you know when and what is happening in the world, and as a result the likely predictions of trends in the oil trading market.
For example, on 21st January 2021, the Associated Press tweeted:
“World leaders expressed relief that the United States under President Joe Biden is rejoining the global effort to curb climate change, a cause that his predecessor had shunned.”
The Associated Press is an independent global news organisation dedicated to factual reporting. Reporting on the major event of a new US president, his thoughts on climate change and the article links they provide, can help investors consider the impact this global event has on the trading of oil. Under a new US administration, reading and understanding the impact of presidential regulations surrounding green energy and climate change, can help your perception of the future direction of the oil market.
- Know all about the supply and demand of oil with the Institute for Energy Research
Investors involved in oil trading should keep consistently up to date with the actions of the OPEC, which is made up of several countries who collectively manage the amount of oil being produced, as well as production in Russia and the United States, that compete with OPEC for market share. As a physical asset, oil is influenced by the supply and demand process.
The Institute for Energy Research (IER) is a non-profit foundation that conducts analysis on the functions, operations, and government regulation of energy markets. This is particularly helpful when they analyse the influence of major oil producers, and the predictions of future supply and demand issues.
On 16th January the IER tweeted:
“The United States is now the largest oil and gas producer in the world, which helps to deter OPEC from cutting production to increase prices and increases U.S. influence throughout the world.”
Investors can use this information to speculate on the likelihood of further production cuts from the OPEC, and also influence the type of oil in which they decide to trade in.
