Record high oil prices, Bitcoin’s massive sell-off… it’s been a tumultuous first six months for global markets in 2022 so far.
In late February the world was plunged into chaos as Russia invaded Ukraine. This sparked immediate sanctions and embargoes on Russian trade which resulted in the oil price hitting record highs. Millions of African commuters are feeling the pain at the fuel pumps as a result of the oil price hike. Start your trading journey – Open an account today
Another major event for markets was the great sell-off of Bitcoin dropping below $20 000. These events, although damaging for countries and individuals, have been a boon for one industry – online trading. Trading is essentially “disaster-proof” as they can profit regardless of market conditions. The best part? You can join the online trading revolution and grab your financial freedom.
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All you need is internet access and a trading account to start trading. To become a successful trader, however, you’ll need education and the support of a reputable brokerage such as CMTrading.
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Global fuel and food prices skyrocket
Tope Ijibadejo, CMTrading Nigeria Region Manager, shares advice for all African traders:
Q: What trading trends have you picked up on during the first six months of 2022?
Ijibadejo said: “The first six months of 2022 have proven to be incredibly eventful. The Russia and Ukraine war, which started in late February, is still raging and damaging the global economy. This war has influenced the price of crude oil of wheat considerably.
“Russia is known to be the second-largest exporter of crude oil and also one of the biggest exporters of wheat. There’s a huge trend on these two assets; In times of war, you will see embargoes, sanctions, and supply issues on commodities. Several embargoes have been placed on Russia, which has made a very big impact on the price of crude oil and wheat. This period of volatility persists and provides opportunities to make money in the market. These are two of the biggest trends so far in 2022 and as of July continue to rock the market. We’ve seen global fuel and food prices skyrocket because of these two commodities.”
Q: What are some of the biggest market movements you’ve seen so far this year?
Ijibadejo said: “OK, so the biggest move I’ve seen this year so far is the price of crude oil from around $92 per barrel in February to $130 per barrel within a few days of the Russia-Ukraine war. From late February to the end of March, crude oil had already risen from $92 per barrel to around $130 per barrel. That was a massive rise in the price of crude oil. It’s highly unprecedented. It’s not something that happens within a space of one month where you see the price of crude oil move that high that fast.
“The rise in the oil price has seen major profits for oil producers and unfortunately higher cost of fuel in Kenya, Nigeria, South Africa, and more. The price of fuel has since dropped from those record highs but fuel prices remain high. This trend looks to continue for the rest of the year.”
“Another big market move is the big Bitcoin crash this year. There has been a massive sell-off in the price of Bitcoin from around four $47,000 per coin to $26,000. This happened just within a few weeks. The price of Bitcoin has fallen and it’s a major trend for 2022. Bitcoin, at its lowest, tumbled below $20,000 for the first time in years. The crashing price of Bitcoin reminds us why it’s important to be involved in online trading.
Trading the markets allows you to make money both ways; you can make money on rising markets and money can also be made when markets are down. So as the price of Bitcoin sold off from around $47,000 would be bad for some, at around $26,000 makes it much more attainable for others. Markets are cyclical and although Bitcoin has lost a lot of its value some will make money when it eventually climbs.
“People who know how to trade the markets, who can see the way the market will move would have made a lot of money from the sell-off. If they could accurately predict the sell-off, they’ll make money when the price drops.”
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