Produce is, of course, one of the biggest markets affected by the weather. And everyone in the entire world eats produce. Eating produce is fundamental to our survival.
Therefore, when the weather adversely (or positively) affects production, it will in turn affect oil demand for shipping food all over the world.
oil warms you … and who warms the sun?
Sometimes, during droughts, there is less produced and therefore less shipped. A binary options trader wants to remember this as he or she trades in oil assets because it will provide a general trend to follow.
A bountiful harvest of tomatoes in California can produce a huge demand for oil as they are shipped all over the world for consumption. A less bountiful harvest will produce less tomatoes to be shipped and, consequently, less oil will be required.
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