http://www.options-trading-education.com/24206/can-you-make-money-with-oil-options/ Can You Make Money with Oil Options? Nearly a year ago we suggested that you can make money with oil futures options. It turns out this advice was correct. If you had purchased puts on crude oil futures or stocks in the oil sector in July you would have made money between then and now. But, can you still make money with oil options? The Wall Street Journal reports that oil prices rise as traders wait for supply reports. Oil prices rose Tuesday, paring earlier losses, on expectations that growing U.S. production and crude stockpiles are both near their peaks. Light, sweet crude for May delivery recently rose 24 cents, or 0.5%, to $52.38 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, traded down 5 cents, or 0.1%, at $58.07 a barrel on ICE Futures Europe. Prices fell in early trading as the dollar strengthened against a basket of other currencies. Oil is traded in dollars, and a stronger dollar makes oil less affordable to buyers using foreign currencies. However, prices erased those losses and moved higher as traders focused on upcoming inventory data. Inventories are high and economies across the world are weak. Nevertheless the Saudis are raising their prices for Asian customers. Can you make money with oil options? You can if there is enough market volatility. Oil Price Determinants USA Today asks what determines if oil prices go up or down. If you get this part right you can make money with oil options. It appears as if oil prices could be on the verge of a rebound, with new data showing that the U.S. oil patch is hitting an inflection point. While specific shale regions – such as North Dakota’s Bakken and Texas’ Eagle Ford – have posted production declines, overall U.S. oil output managed to edge up in recent months. But now that U.S. production has finally dipped, it may augur a new phase for oil markets in which production cutbacks could lead to higher prices. The Energy Information Administration reported on April 1 that total U.S. oil production fell for the week ending on March 27, falling 36,000 barrels per day to 9.38 million barrels per day. The prior week’s production level of 9.42 million barrels per day was the highest level in three decades. If output continues to decline, mid-March 2015 could mark the peak of U.S. oil output, at least for the foreseeable future. Because the price of oil is low oil exploration has dropped off and eventually so will US production. This will lead to higher oil prices. However, Iran may start exporting oil again if talks regarding their nuclear aspirations succeed. That would create a greater glut in the oil market and lower prices. Can you make money with oil options? You can if you can see how these factors play out. When Iran Starts Exporting Again Reuters predicts a long bear market in oil as Iran gets ready to export.

1. Can You Make Money with
Oil Options?
By www.Options-Trading-Education.com

2. http://www.options-trading-education.com/24206/can-you-make-money-with-oil-options/
Nearly a year ago we suggested
that you can make money with
oil futures options. It turns out
this advice was correct.

3. http://www.options-trading-education.com/24206/can-you-make-money-with-oil-options/
If you had purchased puts on
crude oil futures or stocks in the
oil sector in July you would have
made money between then and
now.

4. http://www.options-trading-education.com/24206/can-you-make-money-with-oil-options/
Before We Continue…
Click the links below to get your
FREE training materials.
Free Weekly Investing Webinars
Don’t miss these free training events!
http://www.profitableinvestingtips.com/free-webinar
Forex Conspiracy Report
Read every word of this report!
http://www.forexconspiracyreport.com
Get 12 Free Japanese Candlestick Videos
Includes training for all 12 major candlestick signals.
http://www.candlestickforums.com

5. http://www.options-trading-education.com/24206/can-you-make-money-with-oil-options/
But, can you still make money
with oil options?

6. http://www.options-trading-education.com/24206/can-you-make-money-with-oil-options/
The Wall Street Journal reports
that oil prices rise as traders
wait for supply reports.

7. http://www.options-trading-education.com/24206/can-you-make-money-with-oil-options/
Oil prices rose Tuesday, paring
earlier losses, on expectations
that growing U.S. production and
crude stockpiles are both near
their peaks.

8. http://www.options-trading-education.com/24206/can-you-make-money-with-oil-options/
Light, sweet crude for May
delivery recently rose 24 cents, or
0.5%, to $52.38 a barrel on the
New York Mercantile Exchange.

9. http://www.options-trading-education.com/24206/can-you-make-money-with-oil-options/
Brent, the global benchmark,
traded down 5 cents, or 0.1%, at
$58.07 a barrel on ICE Futures
Europe.

10. http://www.options-trading-education.com/24206/can-you-make-money-with-oil-options/
Prices fell in early trading as the
dollar strengthened against a
basket of other currencies.

11. http://www.options-trading-education.com/24206/can-you-make-money-with-oil-options/
Oil is traded in dollars, and a
stronger dollar makes oil less
affordable to buyers using foreign
currencies.

12. http://www.options-trading-education.com/24206/can-you-make-money-with-oil-options/
However, prices erased those
losses and moved higher as
traders focused on upcoming
inventory data.

13. http://www.options-trading-education.com/24206/can-you-make-money-with-oil-options/
Inventories are high and
economies across the world are
weak.

14. http://www.options-trading-education.com/24206/can-you-make-money-with-oil-options/
Nevertheless the Saudis are
raising their prices for Asian
customers.

15. http://www.options-trading-education.com/24206/can-you-make-money-with-oil-options/
Can you make money with oil
options?

16. http://www.options-trading-education.com/24206/can-you-make-money-with-oil-options/
You can if there is enough market
volatility.

17. http://www.options-trading-education.com/24206/can-you-make-money-with-oil-options/
Oil Price Determinants

18. http://www.options-trading-education.com/24206/can-you-make-money-with-oil-options/
USA Today asks what determines
if oil prices go up or down.

19. http://www.options-trading-education.com/24206/can-you-make-money-with-oil-options/
If you get this part right you can
make money with oil options.

20. http://www.options-trading-education.com/24206/can-you-make-money-with-oil-options/
It appears as if oil prices could be
on the verge of a rebound, with
new data showing that the U.S.
oil patch is hitting an inflection
point.

21. http://www.options-trading-education.com/24206/can-you-make-money-with-oil-options/
While specific shale regions –
such as North Dakota’s Bakken
and Texas’ Eagle Ford – have
posted production declines,
overall U.S. oil output managed
to edge up in recent months.

22. http://www.options-trading-education.com/24206/can-you-make-money-with-oil-options/
But now that U.S. production has
finally dipped, it may augur a new
phase for oil markets in which
production cutbacks could lead to
higher prices.

23. http://www.options-trading-education.com/24206/can-you-make-money-with-oil-options/
The Energy Information
Administration reported on April 1
that total U.S. oil production fell
for the week ending on March 27,
falling 36,000 barrels per day to
9.38 million barrels per day.

24. http://www.options-trading-education.com/24206/can-you-make-money-with-oil-options/
The prior week’s production level
of 9.42 million barrels per day
was the highest level in three
decades.

25. http://www.options-trading-education.com/24206/can-you-make-money-with-oil-options/
If output continues to decline,
mid-March 2015 could mark the
peak of U.S. oil output, at least
for the foreseeable future.

26. http://www.options-trading-education.com/24206/can-you-make-money-with-oil-options/
Because the price of oil is low oil
exploration has dropped off and
eventually so will US production.
This will lead to higher oil prices.

27. http://www.options-trading-education.com/24206/can-you-make-money-with-oil-options/
However, Iran may start exporting
oil again if talks regarding their
nuclear aspirations succeed.

28. http://www.options-trading-education.com/24206/can-you-make-money-with-oil-options/
That would create a greater glut
in the oil market and lower prices.

29. http://www.options-trading-education.com/24206/can-you-make-money-with-oil-options/
Can you make money with oil
options?

30. http://www.options-trading-education.com/24206/can-you-make-money-with-oil-options/
You can if you can see how these
factors play out.

31. http://www.options-trading-education.com/24206/can-you-make-money-with-oil-options/
When Iran Starts
Exporting Again

32. http://www.options-trading-education.com/24206/can-you-make-money-with-oil-options/
Reuters predicts a long bear
market in oil as Iran gets ready
to export.

33. http://www.options-trading-education.com/24206/can-you-make-money-with-oil-options/
Ultimately, a fully rehabilitated
Iran could help bring stable and
relatively high oil prices.

34. http://www.options-trading-education.com/24206/can-you-make-money-with-oil-options/
But the wait following an April 2
framework agreement on Iran’s
nuclear programs is likely to be
long.

35. http://www.options-trading-education.com/24206/can-you-make-money-with-oil-options/
And between now and then, the
predominant direction of pressure
on the oil price is likely to be
downward.

36. http://www.options-trading-education.com/24206/can-you-make-money-with-oil-options/
The stability hypothesis is simple.
At some point, Saudi Arabia, Iran
and some other producers will
make commercial peace and
defend a new equilibrium price.

37. http://www.options-trading-education.com/24206/can-you-make-money-with-oil-options/
It will probably be below the too-
generous $110 a barrel which
prevailed from 2011 to mid-2014.

38. http://www.options-trading-education.com/24206/can-you-make-money-with-oil-options/
But it will be well above the
minimum needed to keep the
world supplied for a long time,
something like $30 per barrel.

39. http://www.options-trading-education.com/24206/can-you-make-money-with-oil-options/
Between now and then, though,
much has to happen.

40. http://www.options-trading-education.com/24206/can-you-make-money-with-oil-options/
The deal has to be fleshed out
and put into effect.

41. http://www.options-trading-education.com/24206/can-you-make-money-with-oil-options/
Iranian oil production must
increase, and wasteful domestic
consumption, which BP’s
Statistical Review of World
Energy shows is currently
running at about half of total
production, must fall.

42. http://www.options-trading-education.com/24206/can-you-make-money-with-oil-options/
It remains to be seen if arch
enemies Iran and Saudi Arabia
will be able to work together to
control the price of oil.

43. http://www.options-trading-education.com/24206/can-you-make-money-with-oil-options/
But in the meantime you can
probably make money with oil
options by betting on continued
low prices.