Binary Options: The Price of Oil is Falling

In the past two months, the price of oil has fallen drastically; Brent crude has fallen to a mere $87 a barrel while West Texas Intermediate has fallen to a measly $83 a barrel. According to the data collected by the Energy Intelligence Group, world oil production is exceeding world demand. Due to drilling and new finds, oil production is conquering oil demand. The new techniques used in North America have created a ten percent increase in production via OPEC in the last year alone.

Although demand for oil is at a fifteen year low, the United States has its greatest surge in supply since 1990 which is due to the recent economic recession and development in energy efficiency; the amount of oil needed to substantiate the economy has decreased. This decrease in the price of crude is attesting beneficial for those trading oil. At Option XP, traders not only have the opportunity to flourish financially on this reported increase but will also benefit from gratuitous welcome bonuses that can be used for these specific trades.

Option XP offers traders the opportunity to earn up to 81% profit when betting on forex, indices, stocks, and commodities. In just 3 simple steps, you can turn simple market movements such as the increase in dollar into major earnings:

1. Choose the underlying asset in which you wish to invest
2. Decide whether the underlying asset will rise or fall below its price at the time of trade
3. Select an amount to invest

In the past two months, the price of oil has fallen in accordance to the sell offs in oil futures contracts. According to the Commodity Futures Trading Commission, traders have sold their long-term positions to the lowest speculation of price since September 2010; bets that the price of oil will rise to 135 million barrels of oil. Analysts are predicting the price of oil to fall to $90 a barrel by September which leaves plenty of room for traders to take advantage of this market shift!