Tuesday, July 26, 2016

TheStreet: Why Trading Oil Became So Sticky

By SIMON CONSTABLE

Trading oil has always been a tricky business, but a decade ago, things changed to make it downright perilous. 
It wasn't that it became more volatile -- the crude market has always been choppy. Rather, the returns from investing in futures became disconnected with the real market. Here's the detail of what happened and how you can avoid the pitfalls.
The energy market became increasingly oversupplied, which in turn led to an unfavorable flip in how the futures markets for the energy perform. Read more here.