Spread betting oil because I find oil interesting

I have rated myself as somewhat of an oil spread betting pro as of late, however, lately the black stuff has been determined to head lower.

The reason why I have started to concentrate my spread betting on the oil market over recent months is most likely related to my growing interest in the oil market, and the WTI – Brent spread in particular.

On two occasions when I noted the spread between WTI and Brent grow to unusual levels I have got in with a long on WTI, taking advantage of any upside rectification in the price.

However, a look at the recent performance of both oil products will show that prices are certainly trending lower, and in tandem.

This has left me with a big negative position. I take large positions on these trades, setting my stop loss far back due to my conviction that oil is oversold at such levels. (Of course there is risk here!).

The fundamentals all point to a correction – IEA data shows robust demand persisting, Chinese demand is still strong and production complications exist in many parts of the world.

Should speculators start buying again in a return to the risk-on environment I believe these trades will pay off as they have done so throughout this year.

I would also like to confirm that I have not traded the FTSE 100 since last week.

And I have also stayed away from currencies. I don’t know which I hate more – the FTSE 100 or currencies. I am just bad at spread betting them.

I believe this lies with the fact that I tend to me more successful at spread betting finical instruments that interest me which means I am more inclined to make better calls.

I would urge people to find a similar love and construct a spread betting strategy around their preferred product.