Putin signed a decree that bans the sale of Russian oil to countries who imposed the oil price cap. It begins Feb 1, 2023 and continues until July 1, though Feb 1 won’t necessarily be the date for oil products.
(Update: I’m told this only bans contracts that use the floor language, not necessarily oil exports to the countries that have formal bans.)
This was rumored so it’s not a big surprise. Oil is higher today after Russia talked about falling production this year as it adjusts to sanctions and the ban. WTI crude oil
Crude Oil
Crude oil is the most popular tradable instrument in the energy sector, offering exposure to global market conditions, geopolitical risk, and economics. The instrument is strategically relied upon and situated in the global economy. Crude oil has proven to be a unique option for traders given volatility and the efficacy of both swing trading and longer-term strategies. Despite its popularity, crude oil is a very complex investing instrument, given the litany of fluctuations in oil prices, risk, and impact of politics stemming from OPEC. Short for the Organization of the Petroleum Exporting Countries, OPEC operates as an intergovernmental organization of 13 countries, helping set and dictate the global oil market.How to Trade Crude Oil Crude oil is most commonly traded as an exchange-traded fund (ETF) or through other instruments with exposure to it. This includes energy stocks, the USD/CAD, and other investing options. Crude oil itself is traded across a duality of markets, including the West Texas Intermediate Crude (WTI) and Brent crude. Brent is the more relied upon index in recent years, while WTI is more heavily traded across futures trading at the time of writing. Other than geopolitical events or decisions by OPEC, crude oil can move due to a variety of different ways. The most basic is through simple supply and demand, which is affected by global output. Increased industrial output, economic prosperity, and other factors all play a role in crude prices. By extension, recessions, lockdowns, or other stifling factors can also influence crude prices. For example, an oversupply or mitigated demand due to the aforementioned factors would result in lower crude prices. This is due to traders selling crude oil futures or other instruments. Should demand rise or production plateau, traders will bid increasingly on crude, whereby driving prices up.
Crude oil is the most popular tradable instrument in the energy sector, offering exposure to global market conditions, geopolitical risk, and economics. The instrument is strategically relied upon and situated in the global economy. Crude oil has proven to be a unique option for traders given volatility and the efficacy of both swing trading and longer-term strategies. Despite its popularity, crude oil is a very complex investing instrument, given the litany of fluctuations in oil prices, risk, and impact of politics stemming from OPEC. Short for the Organization of the Petroleum Exporting Countries, OPEC operates as an intergovernmental organization of 13 countries, helping set and dictate the global oil market.How to Trade Crude Oil Crude oil is most commonly traded as an exchange-traded fund (ETF) or through other instruments with exposure to it. This includes energy stocks, the USD/CAD, and other investing options. Crude oil itself is traded across a duality of markets, including the West Texas Intermediate Crude (WTI) and Brent crude. Brent is the more relied upon index in recent years, while WTI is more heavily traded across futures trading at the time of writing. Other than geopolitical events or decisions by OPEC, crude oil can move due to a variety of different ways. The most basic is through simple supply and demand, which is affected by global output. Increased industrial output, economic prosperity, and other factors all play a role in crude prices. By extension, recessions, lockdowns, or other stifling factors can also influence crude prices. For example, an oversupply or mitigated demand due to the aforementioned factors would result in lower crude prices. This is due to traders selling crude oil futures or other instruments. Should demand rise or production plateau, traders will bid increasingly on crude, whereby driving prices up. Read this Term is up $1.24 to $80.81.
I see this as a soft response compared to some of the options
Options
Options represent a contract that enables investors to buy or sell underlying instruments such as security, exchange-traded funds (ETFs) or indices at a certain price over a certain period of time. Buying and selling options can be done on the options market, which trades contracts based on securities. When trading options, the price of the option is thus a percentage of the underlying asset or security.Investors who purchase an option are able to buy shares at a later time and are known as a call option, while buying an option that allows you to sell shares at a later time is called a put option. Why Trade OptionsNotably, options differ from stock trading because they do not represent ownership in a company. Additionally, futures utilize contracts much in the same way as options, though options are considered a much lower risk due to the fact that you can withdraw or close an options contract at any point. When buying or selling options, traders retain the right to decide how to exercise that option at any point up until the expiration date. As such, buying or selling an option doesn’t mean you actually have to exercise it at the buy/sell point. This flexibility with options is a notable distinction from futures and are considered derivative securities.This means the price of options derived from the value of assets like the market, securities or other underlying instruments. For this reason, options are often considered less risky than stock trading.Options trading is available at many brokerage companies and is a core offering for most retail venues.
Options represent a contract that enables investors to buy or sell underlying instruments such as security, exchange-traded funds (ETFs) or indices at a certain price over a certain period of time. Buying and selling options can be done on the options market, which trades contracts based on securities. When trading options, the price of the option is thus a percentage of the underlying asset or security.Investors who purchase an option are able to buy shares at a later time and are known as a call option, while buying an option that allows you to sell shares at a later time is called a put option. Why Trade OptionsNotably, options differ from stock trading because they do not represent ownership in a company. Additionally, futures utilize contracts much in the same way as options, though options are considered a much lower risk due to the fact that you can withdraw or close an options contract at any point. When buying or selling options, traders retain the right to decide how to exercise that option at any point up until the expiration date. As such, buying or selling an option doesn’t mean you actually have to exercise it at the buy/sell point. This flexibility with options is a notable distinction from futures and are considered derivative securities.This means the price of options derived from the value of assets like the market, securities or other underlying instruments. For this reason, options are often considered less risky than stock trading.Options trading is available at many brokerage companies and is a core offering for most retail venues. Read this Term that were floated like a price floor. It’s also far less aggressive than the natural gas moves Russia made. That may speak to sensitivity around exports and the need for cash, or some other unknown strategy.
What’s interesting are the oil products and that could cause problems in Europe, particularly in eastern Europe.
Meanwhile, former Russian President Dmitry Medvedev got some attention late yesterday with a series of wild predictions on twitter that even drew in Elon Musk. One of them was that oil will hit $150. However, I don’t think most people realized that the whole thing was a joke to poke at those who are predicting a collapse of Russia.
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