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Developing a Tactical Approach to Crude Oil Trading


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Crude oil holds a distinctive position in the international energy landscape, serving as a crucial commodity for traders across the globe. Given the multitude of factors influencing its price, traders must employ a strategic methodology to adeptly maneuver through its intricate dynamics. So, if you are looking for a reliable trading platform, you may consider using oil-loophole.org.

Understanding the Fundamentals: What Drives Crude Oil Prices?

  • Supply and Demand Dynamics: OPEC (Organization of Petroleum Exporting Countries), an intergovernmental organization, holds a significant sway over oil prices. Their decisions on production levels can influence supply. For example, a decision to cut production can lead to a surge in prices. The U.S. shale production, with its swift ability to ramp up or down based on prices, is another pivotal player in this dynamic. Global events, including geopolitical tensions and wars, can disrupt supply chains, causing rapid price fluctuations.
  • Economic Indicators: Global GDP growth and manufacturing data can provide insights into anticipated oil demand. A surging global economy generally means increased demand for energy, which can push oil prices higher.

Technical Analysis: Charting the Course

Traders leverage technical analysis to forecast price trends by studying past market data. Key tools include:

  • Moving averages (MAs): These smooth out price data to create a single flowing line, which makes it easier to identify the direction of the trend.
  • Relative Strength Index (RSI): It measures the magnitude of recent price changes to evaluate overbought or oversold conditions. For instance, an RSI above 70 suggests overbought conditions, while below 30 indicates oversold.
  • Chart Patterns: Patterns like the ‘head and shoulders’ or ‘double top/bottom’ can give traders cues about future price movements based on historical patterns.

The Role of Geopolitics in Crude Oil Trading

Historically, geopolitical events have had profound impacts on oil prices. For instance:

  • Gulf Wars: Both conflicts saw spikes in oil prices due to uncertainties and supply disruptions in the Middle East, a significant oil-producing region.
  • Iranian Sanctions: Sanctions imposed on Iran led to reduced supply in global markets, resulting in upward pressure on prices.

For traders, staying updated on global events is paramount. News outlets, governmental releases, and global economic forums serve as valuable resources.

Risk Management: The Key to Sustainable Trading

Trading in volatile markets necessitates robust risk management:

  • Setting stop-loss and take-profit points: This ensures a predetermined exit from a trade if the market moves unfavorably, limiting potential losses.
  • Portfolio Diversification: Investing in a variety of assets can offset potential losses in crude oil with gains elsewhere.
  • Leveraging Tools: Options provide the right but not the obligation to purchase oil at a set price, while futures involve a commitment to buy/sell at a future date at a predetermined price. Contracts for Difference (CFDs) allow traders to speculate on price changes without owning the actual oil.

Trading Strategies for Different Market Conditions

  • Trend-following: In a bullish market, traders might seek to enter long positions or buy more oil. Conversely, in a bearish market, short-selling or reducing holdings might be optimal.
  • Range-bound strategies: In sideways markets, traders might buy at the lower range and sell at the upper range, capitalizing on minor fluctuations.

The Psychological Aspects of Trading

Psychology plays a critical role in trading decisions:

  • Emotions: Fear and greed can cloud judgment. Traders must remain objective, basing decisions on data rather than feelings.
  • Discipline: Developing a trading plan and adhering to it, even when tempted to deviate, can lead to long-term success.

Leveraging Technology in Crude Oil Trading

With advancements in technology, traders now have sophisticated tools at their disposal:

  • Automated Trading Systems: These can execute trades at lightning speed based on predefined criteria, ensuring opportunities aren’t missed.
  • AI and Machine Learning: Algorithms analyze vast amounts of data to predict price movements, offering insights previously unavailable to traders.

Ethical Considerations and Sustainable Trading

  • Environmental Impact: As global warming becomes a primary concern, traders and investors increasingly scrutinize the carbon footprints of their investments.
  • Ethical Investment: ESG (Environmental, Social, Governance) criteria are increasingly being adopted, emphasizing the importance of responsible trading.

Conclusion: Charting a Path Forward

A tactical approach to crude oil trading requires a blend of understanding fundamentals, leveraging technical analysis, and utilizing platforms. Keeping abreast of geopolitics and mastering risk management is essential. As the world evolves, so too does the crude oil market, underscoring the need for traders to stay informed, adaptable, and always ready to learn.

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ZB Bank heist: Four acquitted to be reimbursed forfeited funds

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By Staff Reporter


FOUR suspects who were acquitted in the ZB Bank money heist case which made headlines two years ago will have their forfeited money reimbursed.

The four are Trymore Chapfikwa, Tozivepi Chirara, Dennis Madondo and Tatenda Gadzikwa.

They filed an application for disposal before Harare magistrate, Clever Tsikwa ruled there was “no justification for the State to keep the money when there is no longer a case against the four.”

The amount to be reimbursed was not mentioned.

The prosecution had protested the release of the funds arguing that there was no evidence to prove that seized money did not belong to the bank.

“The cash before this court as an exhibit cannot be lawfully possessed by the applicants.

“They did not provide proof of the source of their ownership. In this inquiry of whether an exhibit can be claimed by an accused, the accused has an onus to show that they are entitled to the money.” said prosecutor Loveit Muringwa.

The four were jointly charged with Shadreck Njowa, Tendai Zuze and Neverson Mwamuka who were convicted on Friday.

Njowa, Zuze and Mwamuka await their sentencing on Wednesday.

Prosecutors proved Njowa the kingpin of the heist and had been hiding in South Africa before coming back into the country in November 2022 assuming the dust had settled.

Njowa and his accomplices robbed US$2,7m and ZW$43 090 that was in the commercial bank’s transit truck headed for seven branches across the country in January 2021.

The security crew and the gang then staged the robbery along the Harare-Chinhoyi highway just after Nyabira Business Centre.

They had reportedly armed themselves with pistols, knives, and three vehicles which they used to carry the cash in transit.

One of the guards, Fanuel Musakwa, transporting the money was in contact with the heist crew.

Court heard the guard requested the driver to pick up some of the accomplices as passengers before they stole the money.

Meanwhile, prosecutor Muringwa has submitted the State’s aggravation urging the court to impose a harsher sentence for the convicted trio.

“The crime had a negative economic impact on the complainant and resulted in reasonable material or economic loss.

“The complainant is in the banking business, the loss of such vast amounts of money certainly had a negative impact on their business as income was lost because of the lack of cash that could have been circulated to its clients earning it the much-needed interest. Wherefore the State prays that the accused be heavily sentenced of the charged offense of robbery as aggravation factors outweigh the mitigatory factors,” he said.

The three will submit their mitigation Tuesday.

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ZB Bank heist: Four acquitted to be reimbursed forfeited US$234k

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By Staff Reporter


FOUR suspects who were acquitted in the ZB Bank money heist case which made headlines two years ago will have their forfeited money reimbursed.

The four are Trymore Chapfikwa, Tozivepi Chirara, Dennis Madondo and Tatenda Gadzikwa.

They filed an application for disposal before Harare magistrate, Clever Tsikwa ruled there was “no justification for the State to keep the money when there is no longer a case against the four.”

The amount to be reimbursed is US$234 000.

The prosecution had protested the release of the funds arguing that there was no evidence to prove that seized money did not belong to the bank.

“The cash before this court as an exhibit cannot be lawfully possessed by the applicants.

“They did not provide proof of the source of their ownership. In this inquiry of whether an exhibit can be claimed by an accused, the accused has an onus to show that they are entitled to the money.” said prosecutor Loveit Muringwa.

The four were jointly charged with Shadreck Njowa, Tendai Zuze and Neverson Mwamuka who were convicted on Friday.

Njowa, Zuze and Mwamuka await their sentencing on Wednesday.

Prosecutors proved Njowa the kingpin of the heist and had been hiding in South Africa before coming back into the country in November 2022 assuming the dust had settled.

Njowa and his accomplices robbed US$2,7m and ZW$43 090 that was in the commercial bank’s transit truck headed for seven branches across the country in January 2021.

The security crew and the gang then staged the robbery along the Harare-Chinhoyi highway just after Nyabira Business Centre.

They had reportedly armed themselves with pistols, knives, and three vehicles which they used to carry the cash in transit.

One of the guards, Fanuel Musakwa, transporting the money was in contact with the heist crew.

Court heard the guard requested the driver to pick up some of the accomplices as passengers before they stole the money.

Meanwhile, prosecutor Muringwa has submitted the State’s aggravation urging the court to impose a harsher sentence for the convicted trio.

“The crime had a negative economic impact on the complainant and resulted in reasonable material or economic loss.

“The complainant is in the banking business, the loss of such vast amounts of money certainly had a negative impact on their business as income was lost because of the lack of cash that could have been circulated to its clients earning it the much-needed interest. Wherefore the State prays that the accused be heavily sentenced of the charged offense of robbery as aggravation factors outweigh the mitigatory factors,” he said.

The three will submit their mitigation Tuesday.

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‘Some wins, some losses’ — Priddy Ugly announces he’s ‘quitting’ music

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TshisaLive


Rapper Priddy Ugly is hanging up his mic.

Taking to his X timeline recently, the rapper released a statement explaining that Dust will be his final album.

“It’s been 15 years. That’s 3 albums and 3 mix tapes. That’s 5 EPs, 500 features and thousands of verses, Millions of minds blown (that’s word to my pen). That’s a whole wife and daughter, some homies gained, some homies lost, some bruised egos and a whole lot of love, some wins, some losses, some horns, some crosses,” read the statement.

In a separate post he wrote multiple messages on his timeline, detailing how his journey has been.

“This last stretch of making music has been made completely daunting and it’s not coming from the audience. Creating the music has been organic and seamless, everything else has been very challenging. It has completely sucked the eagerness for me to want to keep doing it in this way”

“I’ve had to be my No 1 fan, my biggest motivator and source of inspiration. The artists and  producers I’ve created with really fuelled my energy when my spirit was completely depleted. The conversations had and love shared boosted me in times where I was literally fighting for my life.”

Taking to Instagram in March in 2022 , the rapper wrote about the importance of support in a society full of pressures.

“You need to give yourself time to heal. Even with the scars that remain, may they be reminders of where we come from. May they remind you that you are strong. Life puts pressure, social media puts pressure. Don’t find yourself not worthy of living. Find the light within you and spread that light. Pick yourself up, grab a helping hand. You are loved and you are worthy of life. Hang in there,” he said.

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