Business-Insider

Oil is a complex market. Even people in the industry have a hard time understanding what drives prices. I was once in a work group with a senior executive from British Petroleum. At one point, I was using oil charts to illustrate some analysis we were doing. Acting incredulous, she asked me why I would bother since oil prices are solely supply-side driven. It was a weird question to me as a trader who tends to see things in terms of spot prices equaling the intersection of the supply and demand curves. Obviously, there are supply side influences in oil prices but speculation in oil prices is a very healthy market. I am sure my outlook seemed just as absurd to her.

However, that experience did make me think about the unique and complex relationships that oil prices have in the intermarket environment. In today's video I will look at why some of the forex pairs we would expect to follow oil are diverging, why they may not affect forex prices in the near term and some of the opportunities this presents to traders.

To see the video, click here: http://www.pfxglobal.com/index.php?o...our+submission.
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