Posted February 17, 2015 Niroshan Satkunalingam
I am absolutely delighted to have won my second trader of the month in January after experiencing my best trading month so far. The bulk of my trades were carried out in Brent and WTI while also increasing my participation in the Euribor and Eurodollar markets.
January has been an interesting and challenging month for oil markets due to the uncertainty of whether oil prices would continue to plummet or find the bottom in the record dip in prices. There are reasons to believe that oil prices have bottomed due to the fact that Brent and WTI have been continuing to rise for its third week in a row, trading $60 and $52 respectively as of 14th of February. Furthermore, major producers such as Royal Dutch Shell announced spending cuts while the active number of oil rigs also experienced record drops increasing the likeliness of rise in oil prices.
In January, we also saw the European Central Bank announce quantitative easing where the central bank will inject €1.1 trillion to revitalise the Eurozone. This move had become increasingly more likely after it had come into sight that the Eurozone had fallen into deflation in December. Leading up to and after the ECB meeting on the 22nd January 2015, I was able to take advantage of opportunities in the Euribor markets as prices had moved out of line.
Looking ahead at February, I hope to continue getting better at my trading by increasing my involvement and volume in the markets. Furthermore, the possibility of making it a hat-trick of trader of the months and securing a place on the company holiday has been very motivating and will keep me very focused and determined to carry on improving my trading.
Niroshan was awarded £100 of Selfridge vouchers for winning Trader of the Month.