It is looking more and more likely that the world is being given something of an early Christmas present from Saudi Arabia, for they are currently refusing to budge in regards to the amount of oil they produce each day.
This has led to there being a massive oversupply of oil and as such that has led to one of the biggest oil price drops in recent years.
Which is likely to last well into the New Year and keep the cost of petrol and diesel at the forecourts low. When there is usually an oversupply of oil the main oil producing countries usually reign in production and keep the market price for oil stable.
However that is currently not the case as all oil producing nations do have to agree to cut production which is something Saudi Arabia is flatly refusing to do.
So as a Binary Options trader this current situation has possibly left you wondering just what options are going to be worth a small punt on if the cost of crude oil remains as low as it is. Well it is certainly going to be the oil related companies and businesses that are going to be suffering in the weeks and months ahead as will petrol and diesel retailers.
There will however be some companies who are going to benefit from the drop in regards to oil, haulage firms are usually the first to start seeing something of an instant increase in their profits when the cost of oil drops, so do keep some of those companies in mind if you do fancy making a few Binary Options trades in the weeks or months ahead.
Also one thing to note is that you may thing airlines are going to also benefit from a drop in the price of oil, well they will do over the long term, however most airlines now lock in and secure the cost of their fuel long in advance and as such any immediate drop in the cost of oil is not usually going to affect airlines straight away.
Retailers may also see some major benefits in regards to the lowering of the price of fuel, for that will of course mean their customers will have more cash in their pockets to spend in their shops and also the cost of distributing the goods sold in retail outlets will now be much lower.
