Everything You Need To Know Before Trading Crude Oil

Crude oil sits at the intersection of growth, inflation, inventories and currency, and turns up in almost everything you touch. This covers why oil behaves nothing like an index: it is a physical market that must be produced, shipped, refined and stored, so supply cannot be manufactured the way volume can be in equity options. Also covered: reading contango and backwardation, why the spread between the front two contracts is the tell to watch, how the crude contracts differ in size so you can right size exposure, and the Amaranth Advisors collapse. Education, not a recommendation. 📊 tastylive: https://www.tastylive.com/ 📰 Get Tom's pre-market analysis every morning: https://www.tastylive.com/newsletters 📘 FREE Options Strategy Guide: https://tinyurl.com/bp9ms763 📱 Follow tastylive on X: https://x.com/tastyliveshow Chapters 00:00 Today's setup in crude oil 00:32 How the range trade is built 02:18 Why crude oil matters everywhere 03:33 The longer term breakout pattern 04:33 If oil starts moving higher 05:56 Why USO behaves differently 06:35 Oil is a physical market 07:48 Contango and backwardation explained 08:25 The spread that signals stress 09:31 When he would flip positions 10:41 Contract sizes from large to small 11:18 Other energy products to watch 12:35 Natural gas, the widow maker 13:43 Recapping the day's trade #tastylive #crudeoil #oiltrading #futurestrading #optionstrading #wti #commodities #backwardation #naturalgas #trading tastylive is a real financial network, producing hours of live programming every day. Follow along as our experts navigate the markets, provide actionable trading insights, and teach you how to trade. With over 120 original segments, and over 25 personalities, we'll help you take your trading to the next level, whether you are new to trading or a seasoned veteran. tastylive content is created, produced, and provided solely by tastylive, Inc. ("tastylive") and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read all applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange Traded Options Risk Disclosure Statement found at https://tastytrade.com/disclosures/. Past performance is not indicative of future results. Performance is not presented net of all commissions, fees, and expenses. Multi-leg option strategies incur higher transaction costs than single leg trades as they involve multiple commission charges. Examples provided are for illustrative, informational, and educational purposes only and are not intended to be reflective of results you can expect to achieve. Supporting documentation for any claims, including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer.