Trading of shares and commodities related to Crude Oil, Natural Gas and other related products are very popular practice. While commodities help traders to directly benefit from the daily up and downs of oil and natural gas prices, stocks of companies in oil and gas industry help traders to benefit indirectly from this vital industry.

The difference in supply and demand is the key indicator of oil and gas price changes. The natural oil resources are getting depleted very quickly because of high exploration; and also the cost and investment needed for oil exploration, drilling, export, transportation, storing, refining, etc are also on a rise. These causes rise in price of oil and gas in long-term. The growth forecasts, economic stats, and oil reserve data, etc also affect the global oil price changes.

When trading oil and gas commodities, traders should be very keen to follow the global and local trends as news and speculation are the main factors that affect intraday price changes. When trading stocks or derivatives of oil and natural gas companies, one should additionally evaluate the company fundamental indicators like cash flow, P/E ratio, enterprise value, and growth prospects.

This article is written for Orient Financial Brokers, the leading online shares trading broker in UAE offering online access for trading all major stocks, indices, treasuries and commodities.