How to use the EIA oil report in trading

How to use the EIA oil report in trading The content of the article What is an EIA report What data is published in the report How to use the report in trading Long term trading Short term trading Conclusion In this review, we will consider the weekly EIA report on the state of the oil industry, which has a strong influence on black gold quotes. Many traders closely follow his publications and use the information received when trading. What is an EIA report The Energy Information Administration, EIA, is a division of the US Department of Energy established in 1977. It is responsible for the objective collection of energy data, analysis and economic forecasts. Various reports are regularly published that provide information on energy-related topics. For example, reports on energy stocks, demand and prices. The United States is not only a major oil consumer (approximately 20% of world consumption), but also a leading oil producer. The balance of supply and demand in the US gives a rough ...

Many traders start their journey by trading currency pairs, but then they try CFDs, stocks, and futures. We will talk about the latter today.






Many traders start their journey by trading currency pairs, but then they try CFDs, stocks, and futures. We will talk about the latter today.


A futures contract is a contract between a buyer and a seller to buy or sell an asset in the future at a pre-agreed price. Such contracts were originally created for companies to help them avoid unexpected expenses.


Consider an example. We sell coffee, but we understand that due to the pandemic, the price for it will only grow, and much more. In order to prevent a sharp jump in prices and a drop in our sales, we agree with the supplier to purchase a large batch of grains at the current market price, but in six months.


If the price of coffee really rises in the future, we will only win by buying raw materials at a lower cost. If the price does not rise, but even falls, then only the coffee supplier will benefit from such a transaction, because he will sell it for more than the current market value.


Most often, the underlying assets in a futures contract are crude oil, wheat, corn, stock indices. Such contracts, as a rule, are traded on the stock exchange, and it does not come to the actual delivery of the asset.


Often operations with futures are of speculative interest, traders actively trade them in order to capitalize on price fluctuations. They usually close their positions before the expiration and delivery date of the asset.