Leaders in oil production
Many traders bypass CFDs or oil futures because they are deeply convinced that this instrument is quite
difficult to predict, and if you delve into different brands and types, then it’s just a dark forest.
In fact, there is nothing complicated in oil trading, and the forecast itself is practically no different from analyzing fundamental statistics for countries, as happens when trading currency pairs.
For forecasting and successful trading using oil, a very important factor is timely tracking of information on reducing or increasing the volume of oil production in the main exporting countries.
Actually, in order to understand which countries to work with, you need to know the leaders in oil production, who dictate the market price.
It is the statements of the heads of this country about reducing or increasing production that have the strongest impact on world prices. There is an opinion that oil reserves in Saudi Arabia are coming to an end, but many years of superiority indicate the opposite. The main producer is Saudi Aramco, and the brand of oil is called Arab Light.
Russia occupies the second leading place in oil production. According to various sources, Russia and Saudi Arabia constantly share first place, because the difference in the production of these two countries is not that great. Over the past year, Russia produced 534 million tons of oil, which is 12.7 percent of world production.
It is worth noting that despite such a huge volume of production, news from this country does not have such a strong impact as from Saudi Arabia, but it also has one of the strongest influences on the market. Russian oil is very diverse and has many different grades. The following brands of oil are produced on an ongoing basis for export: Urals, Rebco, Siberian Light, Vityaz, Sokol, Espo.
The third place in the world in oil production belongs to the United States. In recent years, the United States has produced an average of 519 million tons of black gold, accounting for 12.3 percent of total world production.
It is worth noting that the United States has long been one of the largest importers, but quite recently large oil reserves were released into the common market, which greatly influenced the overall pricing policy. The USA is the owner of such a standard oil grade as WTI.
China ranks fourth in black gold production. Over the past year, this state has produced 211 million tons of oil, which is about five percent of global production. It is worth noting that in 2016 China was the largest importer of oil.
This approach is due to the fact that low world prices allow China to create huge reserves, as well as process oil into fuel with profitable resale for its own economy.
Canada occupies the fifth leading place in the world in oil production. In recent years, Canada has produced an average of about 209 million tons of oil per year, which is 5 percent of total world production. Canada is the largest oil exporter to the United States, and the price of oil greatly influences the strength of the national currency.
It is also very important to track data on the amount of oil produced by OPEC countries. You can actually see the countries included in this organization in the picture below:
Analysis of the world's main leaders in oil production, as well as tracking news from OPEC countries will allow you to look at the pricing policy of black gold with understanding and make your own forecasts.
a direct correlation between oil prices and the exchange rates of the national currencies of countries that are the largest oil producers is clearly monitored
Read about the relationship between exchange rates and oil prices here - http://time-forex.com/interes/dollar-neft