Learn How to Trade Forex at The Platinum Trading Academy

Our Premium Forex Trading Courses will teach you Expert Forex Trading Techniques online.

What distinguishes us from other Forex Education Providers?

The Platinum Trading Academy is an Online Trading Academy with Expert Forex Mentors that have a collective experience of over 50 years in the Financial Markets. Our Aim is to turn you into a Professional Trader in the Foreign Exchange Markets through our Premium Forex Training Courses.

  • The institutional way of forex trading
  • Our focus and what you will gain
  • Personal support
  • Precision and simplicity

The institutional way of forex trading

Bankers and big financial institutions are always making huge amounts of money from trading Currencies, Commodities, and Indices. Our online trading academy embraces this style of forex trading and educates our members to adopt the psychology of Institutional forex traders and abandon the retail forex trader mentality.

Retail forex traders tend to use multiple technical indicators such as Moving Averages, Stochastics, RSI, Bollinger bands, MACD, etc without fully understanding the application of these technical indicators on the financial markets. Have you ever thought why some of the largest hedge funds spend millions of pounds on developing their algorithms? It’s simply because you have to use certain permutations and combinations to create that perfect trading strategy.

The forex markets move based on Institutional Order Flow and the prediction of market movements can only come with the experience of trading at an Institutional level. The average forex trader on the open market will try and find the holy grail of trading by following certain forex signal services. Without proper understanding of these forex signals, and the reason behind the trade, you could be left with significant losses. This is why it is paramount to learn, follow, and adapt the institutional methodologies used by financial leaders around the globe.

Learn to trade the market with professionals possessing invaluable experience gathered over many years. Trade with them live instead of trying to read multiple books in an attempt to learn how to trade forex.

Our focus and what you will gain

Our aim is to help you achieve your goals, whether you want to become a full-time trader, earn a secondary income, boost your retirement fund, or achieve full financial freedom. We want to show you how you can take advantage of a 7 Trillion-Dollar Market by learning the art of currency trading from some of our certified professionals that have been trading forex for more than 17 years.

We will teach you everything from the very basics of how the markets function to how, why, and when institutions trade currencies and make money from the foreign exchange markets every single day. We explain to you how to use our forex trading strategies to consistently and profitably trade the forex markets via our Live Trading floor.

Please check our Forex Blogs and Trading Videos so you can see us live in action.

Personal support

If you are new to foreign exchange (FX or Forex) trading, we have trading courses that are customised according to your personal needs. We offer a dedicated support team that will be ready to assist and guide you on your financial trading journey on a personal basis. We aim to provide you support via Skype, telephone, online mentoring and Platinum Trading Television, which is just like watching CNBC or Bloomberg but with a TV channel dedicated to forex trading.

For forex traders that have been trading in the financial markets for some time, but lack the consistency they desire, our dedicated Forex Mentors will give you straightforward forex trading strategies that you can implement by simply placing pending orders in the market. These trading strategies are also known as “Set & Forget” strategies. The benefit of these strategies is that they will allow you to spend more time on profitability, and less time on watching forex news, searching for the holy grail in financial market trading. We want you to trade forex successfully and with confidence, which is why we provide you with dedicated one-to-one mentoring from experts in the field of forex.

Platinum has a 24-hour forex trading support desk so that you can reach us from anywhere in the world at any time of the day. Please check our Forex strategies page on the website so you can see our in-depth trading analysis that we provide, along with our trading results.

Precision and simplicity

Our Forex Trading System and Methodology eliminates time-consuming Technical Analysis and gives precise entry and exit points into the foreign exchange market, and can assist you in becoming a consistent and profitable forex trader. The Platinum Trading Academy is a UK-based company that provides online forex trading education and support with an educational and easy to follow step-by-step Financial Trading Plan.

Time is a key factor for most people, and we train individuals from all walks of life to make a secondary or part-time income, and aim to eventually turn them into full-time professional traders.

Whether you are a Doctor, Engineer, IT Consultant, work offshore in the Oil and Gas sector, or just looking to change your career because you’re not passionate about what you do, we can help you.

You will have access to Foreign Exchange Market Analysis and Forex Trade Setups on the Live London Trading Floor that can help a trader with any level of experience pick the perfect entry points time and time again.

Media

An Introduction to the World of Forex for those who are curious about the Currency Markets.

Take your first step to becoming a Professional Forex Trader Today!

There is no need to travel or go to forex trading seminars or trading webinars, just sit back from the comfort of your own laptop or desktop anywhere in the world, and attend our premium one to one financial trading consultation.

Why should you attend our free financial trading session and what will you learn?

On our one to one consultation you will see the following:

Your Own Personal Platinum Forex Trading Mentor

Having a forex trading mentor will change your forex trading experience forever. Learning from full-time professional forex traders who trade the forex markets every day will enhance every aspect of your financial trading performance, and help you understand how the forex market works so you can finally become the profitable trader you know you can be. We believe that risk management requires both guidance and training in order to limit your risk of losses. In our session we will also give you an overview of our forex courses, and if you’re new to forex trading, we will also give you an introductory beginners forex trading course free of charge to kick-start your forex trading journey.

Free Session on Forex Trading

There are no hidden charges as this is a free consultation on forex trading to help you understand the basic mechanisms of the forex markets. We will also install your forex trading platform absolutely free of charge so that you can learn to trade on a demo account, and fully understand both the risks involved, and the profitability of trading forex at the same time.

What Else Will You Receive?

Completing a session entitles you to access our free forex trading eBook and our forex trading videos, which will further enhance and nurture your forex trading psychology.

  • Beginner

  • Full-Time Trader

  • Trading Mindset

FREE 'Beginners' Forex Trading Introduction Course

This session is for people who are completely new to the forex markets and financial trading:

  • What is the Foreign Exchange Market?
  • How can I profit from converting currencies?
  • Is Forex Trading able to produce a secondary income?
  • What are the different ways that I can trade the Foreign Exchange Market?

Why Trade Forex?

  • Secondary Income Source
  • Financial Stability
  • Retirement Fund
  • More Time with Family
  • Secure Future

The Main Forex Principles

  • What is Forex Trading?
  • Forex Trading Charts
  • Forex Technical Analysis
  • Forex Risk Management
  • Psychology of Forex Trading

Learn How to Become a Full-Time Trader and Gain Consistency on our Forex Trading Consultation!

This session is for people who are completely new to the forex markets and financial trading:

  • Your trading account keeps dipping below break-even and struggles to remain in profit
  • You can’t seem to find the right entry points, or your trades just miss your profit level
  • You are uncertain as to why the markets change direction, or the reason for large moves
  • You are struggling to identify the most active trading hours throughout the week

What you will learn:

  • How to manage Take Profit and Stop Loss levels to ensure healthy risk to reward ratios
  • Understanding short-term price jumps and what causes market movements
  • When the markets experience the highest levels of volatility, and how to take advantage
  • How to discipline yourself and ensure that you make trades based on logic
  • The basic guidelines that every forex trader must follow in order to be profitable

Extra:

  • Understanding Margin, Leverage & The Spread
  • Using your Forex Trading Platform
  • The Trading Hours for Currency Pairs & Commodities
  • Learn to Trade Forex on a Single Time Frame
  • Trading Strategies to Implement for Consistency

Reset your Trading Mindset with our Forex Trading Consultation!

This session is for experienced forex traders that are facing the following difficulties:

  • Have not yet found the perfect forex trading strategy
  • More time spent charting than producing profits from the market
  • Have not yet found a forex trading system that works
  • Have not yet found consistency and have trouble with trade management

The Platinum Trading Academy:

  • Our Financial Trading Methodology
  • The Platinum Forex Trading System
  • Introduction to our Live UK Trading Floor
  • Trading Performance for the last 5 years
  • A brief overview of our Forex Trading Courses, Forex Trading Television, Forex Trade Alerts, Personal Mentoring, and our Live Forex Trading Floor

The Platinum Institutional Trading Strategies:

  • The Platinum End-of-Day Strategy, trading the financial markets during the secret hours of market closure
  • The Platinum Market Cap Reversal Strategy, as used by major financial institutions
  • The Platinum BPC Strategy, which has been profitable year on year for almost 15 years
  • The Platinum Banker Trade Strategy, that possesses almost a 98% hit rate
  • The Platinum Extreme Zone Strategy, that will tell you exactly when the markets will turn, and make you anywhere between 20 to 300 pips on execution

Forex Trading Videos: Live Forex Trades, Strategies, Education & Performance at your fingertips!

Watch our Forex Trading education videos and learn the basics of foreign exchange trading to discover how to trade online. Find tips and tricks you can use to understand the Forex market and profit with consistency.

How to Use Successful Intraday Trading Strategies
Day Trading for beginners to produce 170 pips in a week!
Day Trading for beginners to produce 100 pips in a week!
115 pips on 1 Swing Trading Strategy this week!
Day Trading for beginners to produce 125 pips in a week!
Learn how to use Day Trading Strategies Today!

profitable

Profitable

Do you want to learn forex trading and become a full-time trader, earn a secondary income, boost your retirement fund, or achieve full financial freedom? One common factor that decides how you can achieve these goals is Profitability. You will see that our track record speaks volumes and if you were a member of our Online Forex Trading Academy, you too could benefit from our years of experience.

personal

Personal

The Forex Trading courses we offer are designed to support your individual requirements, to achieve this we provide dedicated one-to-one forex mentoring. Our forex training programs are structured over 10-12 months as a minimum, with the aim to achieve your individual forex trading goals. Our objective is to transform you into a professional forex trader by imparting our knowledge onto you through our personal mentoring sessions.

precision

Precision

Our highly developed Forex Trading system is an algorithmic Confluence Matrix that makes trading easy. Are you spending too much time on your technical analysis, looking at multiple time frames etc? The Platinum Forex Trading System provides you with optimum entry levels for your Forex trades. Learn to trade with precision and profit in excess of 5,000 pips a year.

The Platinum Forex Blogs – Make Trading Easy

Learn how to trade Oil and make + 400 points in the next 20 Days

trading

Oil Oversupply – Find out Platinum’s Trading Approach! 

Hello Traders,

Platinum followers firstly would like to say thank you for all your kind comments and enquiries that came from my Non-Farm Payroll article. It was a pleasure to help and discuss this topic in detail with you.

Today I will be touching a different territory. I would like to discuss Oil which is a commodity market. We mainly focus on trading FX here at Platinum, but that doesn’t mean we don’t look at other markets too. We do trade commodities, indices, FX, etc. As I like to say, I trade anything that moves.

Oil Crush begins in 2014

If you look at the chart of Crude Oil, it is no secret that it started a descending path in June 2014 when it was trading at $107.50 a barrel and it needed only 6 months to hit $47 a barrel in December of the same year. At the time everyone thought Crude had probably hit rock bottom, but we just needed to start the new year, 2015, to find out that it wasn’t the end of it for this market.

Oil 2015

After enjoying a rally in the first 5 months of 2015, the “June” effect hit Crude Oil again and this time all it needed was, guess what? 6 months again for Oil to hit $30 a barrel. It was the end of the world for Oil, or was it? At beginning of 2016, the same history was repeated. Oil rallied and this time it looks like we have hit rock bottom, at least for the time being, and for 6 months the market enjoyed a free ride. But there comes the “June” effect again.

Oil 2016

Crude Oil hit resistance at $51 at the beginning of the June 2016 and sold off to $39.00 a barrel and it needed 2 months only to do that. Do you get where I am going with this? Should I remind you what month we are at now? Any particular reason why I am writing this article right now and not in August or October?

Welcome to the world of seasonal trading

You do not learn this kind of fx trading platforms anywhere else. Mainly because the people who are teaching you somewhere else are not traders. They didn’t even learn to trade like that. Here at Platinum that’s what we do. Every single day!

But then, you ask me: But why does Oil sell-off in June?

My answer to you is another question. Do you want to understand in detail how the microwave works or you want it to serve its purpose and heat your food or drink? There may be a lot of factors why that happens, but to be honest I don’t want to reinvent the wheel. If I observe in the charts that a market sell-off every year in a particular month, I just position myself to enjoy that flow too.

All I want is to get in at the best possible price in the market and go with the flow. If that means selling Oil in June, so be it. But I guess you do deserve a bit more of an explanation about the subject. I will not tell you how the microwave works though. You will have to research on that yourself.

What is going on with Crude Oil?

We need to understand what is fundamentally happening with Oil. So, let’s try to learn how that “microwave” works.

Understanding US APR.

As a trader, you may have heard at some point of SPR or Strategic Petroleum Reserves. What on earth is that? You ask. Well, to make it simple to understand, it is the emergency stockpile of Crude Oil in the US. Just something for you to refer to in case of a crisis like supply crunch or any unexpected emergency like an attack or war. The US has the largest stockpile of Oil in the world. The reserve amount to an astonishing capacity of 727 million barrels (115,600,000 m3) which are stored in big underground salt caverns in Texas and Louisiana. The crude inventories hold mostly sour crude with high sulphur content which can be processed by the refineries in the US and is federally owned.

We must thank Gulf nations for SPR.

If we go back to the 1973 oil crisis, the Arab nations conspired to place an oil ban which froze out Oil from entering the US and Europe, destabilising Western economies. Thanks to that move, the Americans created the SPR to counter any such moves in the future. To put in simple terms, the SPR would be the insurance policy. When hurricane Katrina ravaged the Gulf of Mexico in 2005 affecting the domestic oil production, there was SPR to rely on. The same happened again in 1991 during Operation Desert Storm. If for any reason, the price of oil hits the skies, the SPR can also serve to ease the economy till the oil price stabilises.

What you read here as US “stockpiles” or “crude inventories” is nothing but the SPR. It has 90 days’ worth of oil which can be released during a crisis or emergency and allow ambulances and emergency services to still operate. 

Why is it important to know that?

If you want to take that trade on Oil, you want to make sure the Fundamentals are aligned with the technicals to have the perfect edge. Currently, inventories in the US are climbing and climbing up to scale record highs. Analysts predicted a 2.8-million-barrel increase but with an increase of 5 million barrels in crude supplies, the stockpile stood at 533 million barrels in April, a level unseen since the cold war in 1982. There is no shortage of oil and the stockpile continues to rise. I need to emphasise here that 533.4 million barrels is a lot of Crude Oil even with the present demand and consumption levels.

US Oil production

A few years ago, there was a common idea among oil and gas analysts that if Oil prices fell below the $60 a barrel mark, it would suffocate the shale oil industry. Back then, the break-even price for shale oil production was around $70/barrel.

Today, the reality has proved to be the opposite.

Undoubtedly, Oil production in the US has risen from 8.45 million barrels per day to 9.1 million barrels per day. But what happened? Did shale extraction become cheaper in a short space of time? Well, the answer is yes it did. Fracking has become less expensive thanks to automation and innovation. Shale producers have learnt to manage productivity while saving costs.

In my opinion:

Domestic oil production is set to climb given current oil prices. Oil production should be breaking the high of the seventies very soon.

OPEC losing control

OPEC is losing it big time (you can change this title if you feel like it) Over past decades OPEC (Organization of the Petroleum Exporting Countries) has managed to manipulate energy prices through coordinated production cuts under the facade of “keeping price stability”. However, their significance in the world market has decreased rapidly, exceeding all estimates. What on earth happened? Well, OPEC’s control of oil supplies is a thing of the past due to many factors.

Normally, when OPEC wants to increase the price of oil, the “cartel” just asks its member countries to cut down production resulting, of course, in a spike in the Oil price and everyone associated with OPEC will have a laugh. However, the day came when OPEC struggled to get 50% compliance from members regarding supply cuts – except Saudi Arabia and Kuwait.

Russian Impact

Then quietly on the sidelines, Russia, which isn’t a part of OPEC, overtook Saudi Arabia as the world’s number 1 oil producer. OPEC members inner trust irrevocably fell on the road.

OPEC was more than aware they were losing ground and rushed to cut deals. This year, 2017, OPEC and few non – OPEC producers settled to reduce production by 1.8 million barrels per day. The scene of OPEC sitting to bargain with Russia was a welcome sight.

We know how hard Russians can be at bargaining. I can’t imagine what OPEC may have offered in return to the Russians.

OPEC is in a tight spot.

The irony is that OPEC has only itself to blame. When the shale wave hit the US, OPEC faced serious insecurities. An easier way would have been to watch a nice movie eating some popcorn and concentrate on their business. But we are talking about OPEC here.

Robust Oil production

In the US is OPEC’s worst fear. They planned to bombard the shale oil boom in the US by flooding the world market with cheap oil, causing oil prices to drop to a level impractical for shale producers. Of course, there were consequences on the US shore. From job cuts to bankruptcies, the US felt it all. Oil went below the $30 mark and oil production slowed down too. What OPEC didn’t count on was the rebound and stabilisation that happened faster than expected. Many oil companies went down on winter mode so to speak. Others acquired struggling producers and got just bigger and stronger. Also, shale extraction got – relatively – cheaper with advances in automation technology.

As a result, the US will depend on even less on OPEC. Furthermore, crude production in the US is all set to grow by 360,000 bpd in 2017 and increase to 1 million bpd in 2018. That must have dropped a few jaws on OPEC.

In the end, OPEC is losing grasp of how oil prices behave.

When they announced production cut for the first six months of 2017, oil would have breached the $80 mark under 2014 market circumstances – but under 2017 market circumstances, oil prices barely reacted. If I have to be very honest, I was surprised a bit myself on how the market reacted to that announcement.

The initial cuts in early 2017 are losing steam and support. Financial markets see that and this is priced in. Crude oil prices now seem to trade as any other commodity, based on supply and demand. For 4 decades OPEC has managed to control the supply and prices but this is now over. OPEC has lost it big time indeed.

Summarising

With OPEC no longer being able to influence on Oil Prices, the production of Oil around the world just increasing day by day, especially in the US where stocks are in all-time highs and not set to stop anytime soon, it looks like Oils prices have no argument to be going up in our charts. We could then say based on what we have just learned, that Crude Oil is Fundamentally Bearish.

Oil Chart:

trading

As we can see from the chart, Crude Oil has presented a wonderful opportunity. We have broken a multi-year trending line and any Platinum Trader will have no doubts about what we should do here. We have a BPC (Break, Pull back and Continuation) trade which has now matured.

So what do we have in our favour to take this trade?

Fundamentally we are bearish on Crude Oil

Technically we have just broken a multi-year

Trending Line and have printed a fresh new low

We have confluence of Fib retracements with a supply level

We are approaching the month of June (Seasonal Trading – the “June” effect on Oil) 

The Platinum Formula:

Perfect Fundamentals + Perfect Technical Analysis + Perfect Logic + Perfect Risk Management = Perfect Trade

THE PLATINUM WAY

At Platinum, we teach all individuals from different walks of life to become a full-time trader or create a secondary revenue stream by trading part-time.

Download a free ebook to read about the various Trading Patterns that work in the Financial Market. Watch Trades of the Week Videos in our video gallery. Subscribe to Platinum’s Forex Newsletter.

Wishing you all the best.

Nisha Patel

Live from the Platinum Trading Floor.

What our clients say

"I have to say I had my reservations before coming on board, but they have all been answered which I am happy to report back on. The Platinum Online Trading Academy has been very professional, the trading strategies are relatively simple to implement and am currently trading around a full time job. "

DEAN M. ATCHISON

"I’ve been learning how to trade forex with Platinum now for 3 months, my mentoring is still going and having weekly check ins with my forex mentor. The weekly appointments are really helpful and done online so I can do them from the office or home. Used both the swing trading and day trading strategies whilst working full time."

EMMETT J. GANT

"The trading analysis has been superb along with the professional forex mentors has been a smooth experience so far. I’m now earning a part time income and enjoying each day doing my own analysis and making trades."

ROCCO C. FRANCE

"If you are looking to learn how to trade forex like a professional, these are the guys to go with. Some really in-depth teaching as well and analysis on the forex market. Really enjoying my time here so far!"

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"The forex training and forex analysis Platinum have provided to me so far has been very good, I have been on aboard now for 4 months and have already introduced 2 friends which have joined too."

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Forex Trading eBook

Download this Forex Trading eBook that could change the way you trade Forex forever!

  • Want to know which months you can take serious profits in? Then this book is for you!
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  • 5 days in a month that could change your Financial Circumstances Today!

Learn how to trade Oil and make + 400 points in the next 20 Days

trading

Oil Oversupply – Find out Platinum’s Trading Approach! 

Hello Traders,

Platinum followers firstly would like to say thank you for all your kind comments and enquiries that came from my Non-Farm Payroll article. It was a pleasure to help and discuss this topic in detail with you.

Today I will be touching a different territory. I would like to discuss Oil which is a commodity market. We mainly focus on trading FX here at Platinum, but that doesn’t mean we don’t look at other markets too. We do trade commodities, indices, FX, etc. As I like to say, I trade anything that moves.

Oil Crush begins in 2014

If you look at the chart of Crude Oil, it is no secret that it started a descending path in June 2014 when it was trading at $107.50 a barrel and it needed only 6 months to hit $47 a barrel in December of the same year. At the time everyone thought Crude had probably hit rock bottom, but we just needed to start the new year, 2015, to find out that it wasn’t the end of it for this market.

Oil 2015

After enjoying a rally in the first 5 months of 2015, the “June” effect hit Crude Oil again and this time all it needed was, guess what? 6 months again for Oil to hit $30 a barrel. It was the end of the world for Oil, or was it? At beginning of 2016, the same history was repeated. Oil rallied and this time it looks like we have hit rock bottom, at least for the time being, and for 6 months the market enjoyed a free ride. But there comes the “June” effect again.

Oil 2016

Crude Oil hit resistance at $51 at the beginning of the June 2016 and sold off to $39.00 a barrel and it needed 2 months only to do that. Do you get where I am going with this? Should I remind you what month we are at now? Any particular reason why I am writing this article right now and not in August or October?

Welcome to the world of seasonal trading

You do not learn this kind of fx trading platforms anywhere else. Mainly because the people who are teaching you somewhere else are not traders. They didn’t even learn to trade like that. Here at Platinum that’s what we do. Every single day!

But then, you ask me: But why does Oil sell-off in June?

My answer to you is another question. Do you want to understand in detail how the microwave works or you want it to serve its purpose and heat your food or drink? There may be a lot of factors why that happens, but to be honest I don’t want to reinvent the wheel. If I observe in the charts that a market sell-off every year in a particular month, I just position myself to enjoy that flow too.

All I want is to get in at the best possible price in the market and go with the flow. If that means selling Oil in June, so be it. But I guess you do deserve a bit more of an explanation about the subject. I will not tell you how the microwave works though. You will have to research on that yourself.

What is going on with Crude Oil?

We need to understand what is fundamentally happening with Oil. So, let’s try to learn how that “microwave” works.

Understanding US APR.

As a trader, you may have heard at some point of SPR or Strategic Petroleum Reserves. What on earth is that? You ask. Well, to make it simple to understand, it is the emergency stockpile of Crude Oil in the US. Just something for you to refer to in case of a crisis like supply crunch or any unexpected emergency like an attack or war. The US has the largest stockpile of Oil in the world. The reserve amount to an astonishing capacity of 727 million barrels (115,600,000 m3) which are stored in big underground salt caverns in Texas and Louisiana. The crude inventories hold mostly sour crude with high sulphur content which can be processed by the refineries in the US and is federally owned.

We must thank Gulf nations for SPR.

If we go back to the 1973 oil crisis, the Arab nations conspired to place an oil ban which froze out Oil from entering the US and Europe, destabilising Western economies. Thanks to that move, the Americans created the SPR to counter any such moves in the future. To put in simple terms, the SPR would be the insurance policy. When hurricane Katrina ravaged the Gulf of Mexico in 2005 affecting the domestic oil production, there was SPR to rely on. The same happened again in 1991 during Operation Desert Storm. If for any reason, the price of oil hits the skies, the SPR can also serve to ease the economy till the oil price stabilises.

What you read here as US “stockpiles” or “crude inventories” is nothing but the SPR. It has 90 days’ worth of oil which can be released during a crisis or emergency and allow ambulances and emergency services to still operate. 

Why is it important to know that?

If you want to take that trade on Oil, you want to make sure the Fundamentals are aligned with the technicals to have the perfect edge. Currently, inventories in the US are climbing and climbing up to scale record highs. Analysts predicted a 2.8-million-barrel increase but with an increase of 5 million barrels in crude supplies, the stockpile stood at 533 million barrels in April, a level unseen since the cold war in 1982. There is no shortage of oil and the stockpile continues to rise. I need to emphasise here that 533.4 million barrels is a lot of Crude Oil even with the present demand and consumption levels.

US Oil production

A few years ago, there was a common idea among oil and gas analysts that if Oil prices fell below the $60 a barrel mark, it would suffocate the shale oil industry. Back then, the break-even price for shale oil production was around $70/barrel.

Today, the reality has proved to be the opposite.

Undoubtedly, Oil production in the US has risen from 8.45 million barrels per day to 9.1 million barrels per day. But what happened? Did shale extraction become cheaper in a short space of time? Well, the answer is yes it did. Fracking has become less expensive thanks to automation and innovation. Shale producers have learnt to manage productivity while saving costs.

In my opinion:

Domestic oil production is set to climb given current oil prices. Oil production should be breaking the high of the seventies very soon.

OPEC losing control

OPEC is losing it big time (you can change this title if you feel like it) Over past decades OPEC (Organization of the Petroleum Exporting Countries) has managed to manipulate energy prices through coordinated production cuts under the facade of “keeping price stability”. However, their significance in the world market has decreased rapidly, exceeding all estimates. What on earth happened? Well, OPEC’s control of oil supplies is a thing of the past due to many factors.

Normally, when OPEC wants to increase the price of oil, the “cartel” just asks its member countries to cut down production resulting, of course, in a spike in the Oil price and everyone associated with OPEC will have a laugh. However, the day came when OPEC struggled to get 50% compliance from members regarding supply cuts – except Saudi Arabia and Kuwait.

Russian Impact

Then quietly on the sidelines, Russia, which isn’t a part of OPEC, overtook Saudi Arabia as the world’s number 1 oil producer. OPEC members inner trust irrevocably fell on the road.

OPEC was more than aware they were losing ground and rushed to cut deals. This year, 2017, OPEC and few non – OPEC producers settled to reduce production by 1.8 million barrels per day. The scene of OPEC sitting to bargain with Russia was a welcome sight.

We know how hard Russians can be at bargaining. I can’t imagine what OPEC may have offered in return to the Russians.

OPEC is in a tight spot.

The irony is that OPEC has only itself to blame. When the shale wave hit the US, OPEC faced serious insecurities. An easier way would have been to watch a nice movie eating some popcorn and concentrate on their business. But we are talking about OPEC here.

Robust Oil production

In the US is OPEC’s worst fear. They planned to bombard the shale oil boom in the US by flooding the world market with cheap oil, causing oil prices to drop to a level impractical for shale producers. Of course, there were consequences on the US shore. From job cuts to bankruptcies, the US felt it all. Oil went below the $30 mark and oil production slowed down too. What OPEC didn’t count on was the rebound and stabilisation that happened faster than expected. Many oil companies went down on winter mode so to speak. Others acquired struggling producers and got just bigger and stronger. Also, shale extraction got – relatively – cheaper with advances in automation technology.

As a result, the US will depend on even less on OPEC. Furthermore, crude production in the US is all set to grow by 360,000 bpd in 2017 and increase to 1 million bpd in 2018. That must have dropped a few jaws on OPEC.

In the end, OPEC is losing grasp of how oil prices behave.

When they announced production cut for the first six months of 2017, oil would have breached the $80 mark under 2014 market circumstances – but under 2017 market circumstances, oil prices barely reacted. If I have to be very honest, I was surprised a bit myself on how the market reacted to that announcement.

The initial cuts in early 2017 are losing steam and support. Financial markets see that and this is priced in. Crude oil prices now seem to trade as any other commodity, based on supply and demand. For 4 decades OPEC has managed to control the supply and prices but this is now over. OPEC has lost it big time indeed.

Summarising

With OPEC no longer being able to influence on Oil Prices, the production of Oil around the world just increasing day by day, especially in the US where stocks are in all-time highs and not set to stop anytime soon, it looks like Oils prices have no argument to be going up in our charts. We could then say based on what we have just learned, that Crude Oil is Fundamentally Bearish.

Oil Chart:

trading

As we can see from the chart, Crude Oil has presented a wonderful opportunity. We have broken a multi-year trending line and any Platinum Trader will have no doubts about what we should do here. We have a BPC (Break, Pull back and Continuation) trade which has now matured.

So what do we have in our favour to take this trade?

Fundamentally we are bearish on Crude Oil

Technically we have just broken a multi-year

Trending Line and have printed a fresh new low

We have confluence of Fib retracements with a supply level

We are approaching the month of June (Seasonal Trading – the “June” effect on Oil) 

The Platinum Formula:

Perfect Fundamentals + Perfect Technical Analysis + Perfect Logic + Perfect Risk Management = Perfect Trade

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Wishing you all the best.

Nisha Patel

Live from the Platinum Trading Floor.