lets have some fun with crude...!

[Riskyman]

WTI is US oil..

Brent is what we are supposed to be aligned with since we dont import much oil from US, but since USDINR plays havoc with our charts..its better to follow WTI

Sir, We in India are not at all supposed to be aligned with brent. Brent is oil out of the North sea from where we dont import any crude at all. We mostly import crude from the Persian gulf and west africa i.e mostly nigerian bonny light crude. We follow ORB (OPEC reference basket price) which is the weighted average of prices of different blends produced by different OPEC members. The ORB prices are made up of both heavy and lighter crude oil blends.
However, since most of the worlds oil trades tend to happen in USD, the ORB prices tend to largely reflect WTI. Another reason for following WTI is that WTI is very light crude i.e easier to process as compared to crude from persian gulf which is heavier. But, this is not a given case all the time. Depending on OPEC demand/supply dynamics, a lot of times WTI prices follow ORB prices.

We dont import any oil from US at all. There was 1-2 trial shipments done(if i remember correctly). Thats all.
You are very right! For trading purposes we should follow WTI.
Just 2 cents!

Edit: Btw, there is another benchmark for crude oil out of Dubai(Fateh). This provides benchmark for pricing to far east countries.

 

[linkon7]

I think many crude trades are ther e like tuna,imfine,nt others....you trading the same what you discussed here ?so your trading starts from 10.00+1.00=11.00am?as you give 1hr for cooling off then put orders ...you mentioned that trade take as per where todays 1hr range with ydays range ...can you pls eloberate it?

If today's opening range is bang in the middle of yesterday's range, then both ways trade is possible.

If today's range is a gap up above yesterday's range, then we look for long above today's high. if today's low breaks, then we wait for this low to be rejected before we enter long.

likewise, If today's range is a gap down below yesterday's range, then we look for short below today's low. if today's High breaks, then we wait for this high to be rejected before we enter long.

Again a lot of this depends on the structure of WTI in the morning. We might appear bulling based on yesterday's charts, but WTI might be bearish. Nothing exciting happens in the first 1-2 hours anyway, so we can relax and trend the trend as it develops.

 

[linkon7]

Sir, We in India are not at all supposed to be aligned with brent. Brent is oil out of the North sea from where we dont import any crude at all. We mostly import crude from the Persian gulf and west africa i.e mostly nigerian bonny light crude. We follow ORB (OPEC reference basket price) which is the weighted average of prices of different blends produced by different OPEC members. The ORB prices are made up of both heavy and lighter crude oil blends.
However, since most of the worlds oil trades tend to happen in USD, the ORB prices tend to largely reflect WTI. Another reason for following WTI is that WTI is very light crude i.e easier to process as compared to crude from persian gulf which is heavier. But, this is not a given case all the time. Depending on OPEC demand/supply dynamics, a lot of times WTI prices follow ORB prices.

We dont import any oil from US at all. There was 1-2 trial shipments done(if i remember correctly). Thats all.
You are very right! For trading purposes we should follow WTI.
Just 2 cents!

Edit: Btw, there is another benchmark for crude oil out of Dubai(Fateh). This provides benchmark for pricing to far east countries.

Nice info... but we dont really care where India gets it oil from. All we need is a way to fill the hole in our price charts when we open. movement of both WTI and Brent mimic each other but i personally feel we are more aligned to WTI. Again, we can choose our own poison.

 

[Riskyman]

Nice info... but we dont really care where India gets it oil from. All we need is a way to fill the hole in our price charts when we open. movement of both WTI and Brent mimic each other but i personally feel we are more aligned to WTI. Again, we can choose our own poison.

Sir....Like I said.. for trading.... WTI. Rest was fyi only.

 

[VJAY]

If today's opening range is bang in the middle of yesterday's range, then both ways trade is possible.

If today's range is a gap up above yesterday's range, then we look for long above today's high. if today's low breaks, then we wait for this low to be rejected before we enter long.

likewise, If today's range is a gap down below yesterday's range, then we look for short below today's low. if today's High breaks, then we wait for this high to be rejected before we enter long.

Again a lot of this depends on the structure of WTI in the morning. We might appear bulling based on yesterday's charts, but WTI might be bearish. Nothing exciting happens in the first 1-2 hours anyway, so we can relax and trend the trend as it develops.

Thanks linkon for detailed steps of the method....

 

[pannet1]

Sir, We in India are not at all supposed to be aligned with brent. Brent is oil out of the North sea from where we dont import any crude at all. We mostly import crude from the Persian gulf and west africa i.e mostly nigerian bonny light crude. We follow ORB (OPEC reference basket price) which is the weighted average of prices of different blends produced by different OPEC members. The ORB prices are made up of both heavy and lighter crude oil blends.
However, since most of the worlds oil trades tend to happen in USD, the ORB prices tend to largely reflect WTI. Another reason for following WTI is that WTI is very light crude i.e easier to process as compared to crude from persian gulf which is heavier. But, this is not a given case all the time. Depending on OPEC demand/supply dynamics, a lot of times WTI prices follow ORB prices.

We dont import any oil from US at all. There was 1-2 trial shipments done(if i remember correctly). Thats all.
You are very right! For trading purposes we should follow WTI.
Just 2 cents!

Edit: Btw, there is another benchmark for crude oil out of Dubai(Fateh). This provides benchmark for pricing to far east countries.

man. you are very well informed guy.

just blowing my trumpet here

 

[Riskyman]

just blowing my trumpet here

Good trade my friend. Yesterday you got a big spike in your favor and again today!! Looks like you are figuring ways to get all the masala for yourself

 

[pannet1]

Good trade my friend. Yesterday you got a big spike in your favor and again today!! Looks like you are figuring ways to get all the masala for yourself

incidently i tried to fool my 6 year old boy by luring him to eat Dosa with some sprinkle of panner butter masala instead of the actual gravy. he tasted it and quipped, this is not just the powder not masala ... so he actually left me with some masala sprinkled Dosa ... to myself.

 

[doss186]

Hope I dont repeat the blunder I made yesterday!

 

[sanju005ind]

If today's opening range is bang in the middle of yesterday's range, then both ways trade is possible.

If today's range is a gap up above yesterday's range, then we look for long above today's high. if today's low breaks, then we wait for this low to be rejected before we enter long.

likewise, If today's range is a gap down below yesterday's range, then we look for short below today's low. if today's High breaks, then we wait for this high to be rejected before we enter long.

Again a lot of this depends on the structure of WTI in the morning. We might appear bulling based on yesterday's charts, but WTI might be bearish. Nothing exciting happens in the first 1-2 hours anyway, so we can relax and trend the trend as it develops.

This particular technique applies to stocks and indexes too.