Lately, there has been quite a bit of discussion surrounding oil, and for good reason. Since late 2014, the value of the commodity has been sitting at crisis levels; all while the world's largest oil producers have refused to do anything to improve conditions. However, recently, there have been talks about the world's largest producers working together to reduce supply. In fact, there's a big meeting going on this weekend that will likely decide the short term fate of oil. Today, we'll talk about that meeting, what's likely to happen, how the value of oil is likely to react, and how binary options traders can take advantage of the trends.

The World's Largest Oil Producers Are Meeting This Weekend

As mentioned above, oil has been sitting at crisis levels as the world's largest producers of the commodity have struggled to agree on a way to improve conditions in the market. However, this weekend is a big weekend for the commodity. On Sunday, the leaders of the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC producers will be meeting to try and determine the best route for reducing the oversupply issue surrounding oil.

The idea here is that if the world's largest oil producers can agree on a way to get supply back down, demand will continue to grow, ultimately leveling out supply and demand, and supporting price growth in the value of the commodity. However, things aren't quite that simple.

What's Likely To Happen At The Meeting

The massive supply glut in the oil market is a very interesting one, because at some point, it will force the world's largest suppliers to work together to find a solution. However, it's worth mentioning that the world's largest suppliers of oil aren't necessarily best friends. In fact, it has been argued that a big reason why the supply glut and crisis have lasted this long is because of the fact that the people running the show can't seem to get along. The overall consensus in the market is that the meeting is going to be wasted time. Essentially, investors and analysts alike are expecting that nothing at all will come of the meeting as the world's largest producers aren't likely to come to an agreeable conclusion.

How The Market Will React To The News

On Friday, the value of oil fell in a big way. As mentioned above, investors and analyst believe that nothing good is going to come of the meeting on Sunday. I have to say, this is my belief as well. With that said, following the meeting, I'm expecting that the market is going to react in a negative way. After all, if a solution isn't found to the issue, investors are going to continue pulling money out of the commodity and we're going to continue seeing declines.

How Binary Options Traders Can Take Advantage Of The Trends

As binary options traders, our job is relatively simple. All we need to do is use the information that's provided to us in order to predict trends in financial markets and capitalize off of those trends. In the case of oil, the trends are written on the wall. With the idea that OPEC and non-OPEC countries are going to get along in order to reduce the supply glut unlikely at this point, bad news is going to hit the oil market on Sunday, leading to declines. So, binary options traders should be watching the commodity for strong put option opportunities in order to ride the trends down to the profits.

What Do You Think?

Where do you think oil is headed and why? Let us know your opinion in the comments below!

[Image Courtesy