Is the current rise in the price of oil exactly your opportunity to increase your income?

Is the current rise in the price of oil exactly your opportunity to increase your income?

In a world of unpredictable oil price swings, geopolitical events and decisions by major producers shape our daily expenses. In recent days, due to the escalation of the conflict in the Middle East, the oil market is experiencing changes that we cannot ignore. Oil prices were on the decline, but are currently rising.

It is known that every increase in the price of “black gold” causes a chain reaction – from filling the tank to the purchase of basic foodstuffs, and every fluctuation affects our household budget. Oil is not only an energy source, it is one of the drivers of the global economy and a key factor in the wealth of many countries. However, the good news is that you don’t have to own an oil field to potentially make money from this valuable energy source.

Find out below how you can use your knowledge of oil price movements and enter the world of trading this valuable energy product.

State of the market in the previous period

Crude oil prices on the world market have been oscillating for a long time, but experts agree that there is a downward trend. After a two-week rise, prices fell by more than 3% in the last week of September, which analysts attributed to an expected increase in production within OPEC in December and traders’ skepticism about demand growth until then.

At the end of September, a barrel of oil fell by 3.5%, to 71.89 dollars, while on the American market it became cheaper by 5.2%, reaching a price of 68.18 dollars. The drop in prices is primarily related to Saudi Arabia’s announcement that it will abandon the price of 100 dollars per barrel and hints that it will increase production in December in order to increase its market share on world exchanges.

The recent conflict between Israel and Hezbollah has not significantly affected prices, as neither side is a significant player in the “black gold” industry. However, changes in the distribution of Iranian oil, due to the escalation of the conflict, could cause a crisis in the market.

Based on the current volatile geopolitical situation in key oil regions and Saudi Arabia’s announcement of increased production, what do you think the future holds? Will the price of “black gold” continue to change and should we invest? Register now and download your FREE eBook guide on how to trade natural gas prices.

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The importance of oil production in Serbia

Serbia is not among the rich in oil, but it has significant reserves. Our country covers a quarter of its needs from domestic sources (26.1%), and the deposits are mainly located in Vojvodina, while in the meantime they have also been discovered on the territory of Serbia itself. So far, more than 2,000 wells have been drilled, of which about 800 are in production. It is interesting that the deepest borehole in Krajišnik is 4,650 m deep.

Oil production and processing are important for our economy, which confirms the success of the NIS company, which records outstanding business results. In the first half of this year, NIS invested RSD 24.4 billion in capital projects, which is 111% more than in the same period last year. The net profit was 5.3 billion dinars, while the total volume of oil and gas production was 575,000 conditional tons. There is no doubt that the business results of this successful company have a positive effect on the budget of our country, and ultimately our standard.

Download the FREE “How to Trade Stock Prices Online” guide here.

Oil (Freepik)

Iran’s recent attack on Israel brought changes to the oil market

The recent escalation of conflict in the Middle East has caused changes in the oil market. Namely, the morning after Iran’s attack on Israel, which took place on October 1, oil prices began to rise. Oil rose by almost 2 percent, reaching a price of $74.88 per barrel. Iran, as one of the leading oil producers and a member of the Organization of the Petroleum Exporting Countries (OPEC), exports most of its oil to China due to long-standing international sanctions. However, analysts have previously emphasized that the reduction of these exports would have a huge impact on the global market. Israel’s prime minister has vowed to respond to Iran after the Islamic Republic fired dozens of ballistic missiles at Israel. Iran, which exports about 1.7 million barrels of oil a day, warned Israel on Tuesday of more devastating attacks if it retaliates to the missile attack.

Cene nafte (Freepik)

Based on the potential escalation of the conflict in the Middle East involving OPEC member Iran, and the current increase in the price of oil on the global market, what do you expect in the future? Is the unpredictable price of “black gold” caused by current geopolitical events, exactly your opportunity for profit? If you want more reports like this and think you’re ready to learn more about trading oil prices, download our FREE book.

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This text was prepared and approved by the investment advisor, Svetislav Milutinović, employed by Kapital RS Inc. ad Belgrade, Severni boulevard 6, an investment company under the supervision of the Securities Commission of the Republic of Serbia, license number: 5/0-02-672/18-16.

Source: BIZLife

Photo: Freepik