Benefits Of Trading In Crude Oil Inventories

Crude Oil Inventories

Hi Traders,

Hope everyone is well and are having a wonderful trading month till now. At Platinum Trading Institute (USA), we strive to keep ahead of the Forex markets by recommending investments and tips that are timely and meaningful.

This blog has been written keeping in mind the Crude Oil Inventories and how you can benefit from them.

Crude oil inventories

Trading in crude oil inventories has always been an attractive income generation option. It is one of the most popular trading instruments in the world.

Since long, traders have always benefitted by trading in Crude Oil Inventories as it offers lucrative profit-making opportunities. Smart investors prefer to invest in oil stocks since they tend to increase in value over the years.

Moreover, the oil sector offers huge trading potential which makes the energy sector a favorite platform for investing capital.

What are crude stockpiles?

Crude oil stockpiles are also referred to as crude oil inventories. They are vast reserves of unrefined petroleum shipped in barrels.

Governments and oil producers use crude stockpiles to reduce the impact of financial losses on the supply and demand chain.

Factors such as the OPEC and government trading policies decide the inventory levels of trading in crude oil.

When the inventory levels of a crude oil change, it affects the price of oil and petroleum products.

Current crude oil trading trends

The crude oil stocks rose by 6.805 million barrels by August 10th, 2018 against a decline of 1.351 million barrels the previous week. The gasoline stocks decreased by 0.74 million barrels as anticipated in the markets.

Statistical figures indicate the market is ripe for trading in oil stocks.

Crude Oil Inventories

Let’s look at a few options for investing in crude oil inventories.

Invest when stocks are cheap and reap high benefits in better times

Oil stocks post huge losses as and when oil prices crash. In the past, oil companies had invested heavily when crude oil traded just above $ 100 per barrel. They subsequently suffered critical loses as the oil exploration and production sector took a downturn and had to sell major assets to cover the losses, and to survive.

The crude oil trading market is prone to high fluctuations. Investing in crude oil trading can generate substantial profits when done at the right time, in the right manner. So, it’s important to know how the oil market works and understand the insights of trading profitably in crude oil stocks.

Smart investors buy oil stocks when the oil sector faces a slowdown and stock values crash. They reap huge profits by selling then stocks high when they recover. This is the main mantra of making a profit by trading in crude oil.

Oil Stocks dividends are really attractive

Investing in traditional bonds over the years offers low dividends.

Moreover, considering the current market scenario, a large capital is required to buy a sufficient number of bonds so as to earn a decent amount in the form of interest as the bonds offer very low interest rates.

However, unlike other investment sectors, the oil and energy sector is an exception.

Most top-notch and high-yield companies have undergone restructuring and have become successful limited partnerships.  They have started trading in crude oil and are distributing most of their income as dividends. So they’re quickly becoming a lucrative investment option for investors all over the world. The dividends they offer surpass the profits earned through traditional investment practices.

Unexpected growth potential – coupled with higher rewards from higher energy prices

The oil and energy stocks have started shining in the recent times.

Unlike in the past, crude oil producing companies have now started introducing new ways and methods to increase oil production levels. New pipelines are being laid down and transportation facilities improved to transfer oil. They’re also buying new infrastructure and growing steadily.

This has led to an overall development of the crude oil sector.

Big oil companies are opening up investment opportunities. They’re inviting investment capital, and promise to deliver a healthy dividend in the future.

Thus, trading in crude oil offers limitless trading opportunities to traders who stand to make big profits by trading in oil stocks and bonds.

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Earnings Disclaimer:

The information you’ll find in this article is for educational purpose only. We make no promise or guarantee of income or earnings. You have to do some work, use your best judgment and perform due diligence before using the information in this article. Your success is still up to you. Nothing in this article is intended to be professional, legal, financial and/or accounting advice. Always seek competent advice from professionals in these matters. If you break the city or other local laws, we will not be held liable for any damages you incur.

By | 2018-08-23T11:19:15+00:00 August 22nd, 2018|Forex|Comments Off on Benefits Of Trading In Crude Oil Inventories

About the Author:

Dr. Jayesh Mehta
Nationally recognized Advanced Technology leader with over 25 years in the Aerospace Industry. Sustained track record of providing innovative solutions to advancements in the gas turbine and alternate energy fields. Dr. Mehta is an innovator and a passionate financial analyst who has turned his attention now to intricate world of FOREX and Crypto trading education. Academically, Dr. Mehta shares Mr. Nirav Shah’s passion for developing algorithmic strategy based trading approaches for financial instruments applied to FOREX, Crypto, and Equity markets. As a part of his MBA in financial engineering at Xavier University, Dr. Mehta had developed and published several peer reviewed papers on Black-Scholes options models in flagship financial journals.