Crude oil, as a commodity, is traded very actively all over the world. Crude oil trading in the most liquid manner is the sweet crude oil futures (commodities) contracts under the NYMEX Division. It is also the greatest futures contract (by volume) for physical commodities trading.

On a futures contract, there are a number of additional trading options and risk management options apart from different crack spread options and calendar spread options. To a great extent, these options determine the pricings differential of crude oil futures, gasoline oil futures, crude oil and heating future.

Crude oil futures (commodities) are on a constant rise currently and have been witnessing a weekly increase on the recovery signs in response to the demand of the world's highest energy consumer nation, the US.

This year, the gas inventories and the crude oil stock have seen great drops in a span of 7 weeks, as per the Energy Information Administration. The earlier losses were reversed in response to the indication of a recovery in the US economy (measured through employers adding jobs month after month). The world's largest economy has added over 536000 jobs only in the month of May, which is the highest number since the year 1983.

 

Experts believe that this sort of positive news related to the large scale general economy, an increased scope for risk, and the lowering of stockpiles of gas support oil prices to a great extent. Oil futures currently stand for a gain of 1.6% for this week which is after a 5.6% gain from the previous week.

Only last week, commercial crude oil futures (commodities) stocks, held by US have seen a significant drop. The supplies in Cushing, Oklahoma have risen for a tenth time in the past eleven weeks now. This is the place that receives all NY traded West Texas Intermediate oil deliveries.

However, this drop can be accounted to the decreased import than the absence of demands. Gas inventories have fallen from 2.65 million to 219 barrels right at a time when the peak summer driving season of the country starts. The sum total consumption of fuel has risen 1.6% to 20 million barrels each day. This is the greatest levels of increase since January 30, last year.

Due to the strong indication of a recovery in the economy of US, it is predicted that crude oil futures (commodities) might see a rise in the coming weeks. Expert analysts are of the opinion that forecast oil would see a rise by the end of the week. On the other hand, some others (fewer) are of the opinion that it will remain unchanged. Fewer analysts predict a decline in the contract.

Also due to the long futures positioning, it is believed that oil might end up being oversold. The decline in the long futures, say analysts, is substantial (over 60% in the span of a single month) and is sure to leave the oil market oversold.