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Crude oil is traded on different exchanges, each with their own trading hours. Other tradable crude oils include Urals (Russia), Bonny Light (Nigeria), and Tapis (Malaysia). Welcome to DailyFinancialPro, your trusted source for daily financial news, investment tips, market analysis, and personal finance advice. Stay informed and empowered to make smart financial decisions with our expert insights and up-to-date information. They are not intended for distribution or use in any location where such distribution or use would contravene local law or regulation.
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ATFX offers WTI as energy product on its online trading platform with competitive spreads, high quality trade execution, and 24/5 support. When acquiring our derivative products you have no entitlement, right or obligation to the underlying financial asset. AxiTrader is not a financial adviser and all services are provided on an execution only basis. Information is of a general nature only and does not consider your financial objectives, needs or personal circumstances. Important legal documents in relation to our products and services are available on our website.
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Additionally, the biggest consumers of oil are among the most powerful nations. Events that threaten or hinder the production or Crude oil cfd transportation of crude oil and its refined products can send oil prices higher very quickly. Conversely, geopolitical events that increase crude production or ease transportation bottlenecks, such as those in the Straits of Hormuz or the Suez Canal, can drive oil prices lower.
- You can open your first CFD trade on oil by clicking on the commodities section in the top left toolbar of our trading platform.
- CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
- Events that threaten or hinder the production or transportation of crude oil and its refined products can send oil prices higher very quickly.
- Leverage allows traders to increase their exposure to the oil market without needing the full amount of capital that the position would typically require.
In this context, the WTI Crude vs Brent Spread refers to the price difference between USOIL and UKOIL. Usually, the Brent Crude Oil (UKOIL) price would lead USOIL by a few dollars. However, when this spread difference is drastically widened or narrowed, a price reversal is expected on either UKOIL or USOIL.
This sensitivity means that oil prices can be volatile and move sharply when major news breaks or unexpected events occur. US crude oil – also known as West Texas Intermediate – is produced primarily in Texas and other parts of the United States. It’s referred to as ‘light’ and ‘sweet’, in line with its low sulphur content and low density, and it’s the main benchmark for pricing oil in North America. Our mission is to build a next generation platform with superior trading environment for every trader across the globe. VT Markets is more than a platform, it is a place to capture market opportunities and achieve your own success.
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Similar to the scalping strategy, we will be looking to trade a powerful trending move. The difference here is that we will be using the EMA 10 as our basis for taking a long or short position, once a rejection from this EMA occurs with a filter condition met. The maintenance margin is the small percentage of your trade’s value that you need to have in your account to keep the trade open.
CFDs are popular among traders because they allow speculation on the price movements of various assets without the need for physical delivery. This detailed guide explores the key aspects of CFDs on crude oil futures contracts, focusing on delivery time, settlement, and practical considerations. Contracts for difference (CFDs) are derivative products that allow you to trade on the price movements of the underlying asset, without buying the crude oil outright at its spot price. With CFD trading, you agree to exchange the difference in value between the time that a position is opened and closed. Given the volatility of the oil market within recent years, this can lead to either profit or loss. In recent years, Brent crude oil is usually more affected by political, economic and geographical pressures and instability.
- The price of WTI Crude Oil can be influenced by the interplay of several factors, including supply-side and demand-side, as well as geopolitical and economic events.
- You can hold positions indefinitely and choose smaller, customizable contract sizes.
- Pepperstone doesn’t represent that the material provided here is accurate, current or complete, and therefore shouldn’t be relied upon as such.
- Stay updated with breaking news and monitor long-term performance to identify patterns.
- Additionally, all transactions are cash-settled, so there’s no obligation to take physical delivery of oil.
- Note that there’s no obligation to fund your account once opened, and you can wait until you’re ready to place your first trade.
Oil CFDs Guide – Buy, Sell and Trade
Production cuts or increases by these countries can have a substantial impact on the global oil market and WTI prices. The best time to trade crude oil CFDs is during high-volatility periods, typically overlapping with the opening hours of major oil markets, such as New York and London. Crude oil markets are open 23 hours, 6 days a week, which means traders can pick and choose the best or most convenient time to trade USOIL (WTI) and UKOIL (Brent) prices. However, there are also typical optimal timings to intraday trade Crude Oil. Oil prices are driven by various global factors because of the vital role energy plays in the economy and daily life of every country.
Crude oil is the unrefined fossil fuel from which ubiquitous petrochemical products like petrol and diesel are distilled. Rough estimates suggest that the world gets through a staggering 95 million barrels of crude (including biofuels) every single day, with global demand expected to top 99 million barrels a day this year. It should come as no surprise that crude oil is one of the most important and frequently-traded commodities in the financial markets. Due to its extensive trading volume and diverse sources, crude oil is susceptible to geographic, political, and economic factors that make its market highly volatile. This volatility presents both risks and opportunities for traders interested in capitalising on the oil market.
It is important to be aware that multiple oil prices are derived differently:
The overall costs for this Oil CFD are comparatively lower since Brent Crude is produced near the North Sea, leading to fewer transportation costs. Texas quickly became a major oil-producing region, with one of the earliest significant discoveries occurring in 1901. The WTI benchmark was established in 1920, taking its name from the West Texas region and «intermediate» from its density and sulphur content.
Let’s say you deposited $1,000 dollars, instead of using it all just to trade USOIL, you can use just $10 to control the same position size, and still have $990 dollars to trade other assets with. Brent is the global benchmark, used to price two-thirds of the world’s oil. Brent CFDs are used to trade based on global factors like OPEC decisions or geopolitical events.
Fast-forward to the early 2000s and rising demand from emerging economies and geopolitical tensions in oil-producing regions caused prices to climb. In July 2008, crude oil reached an all-time high of over $147.27 per barrel before the financial crisis caused a decline. In the following years, technological advancements – like the shale revolution in the United States – brought an influx of new supply, causing prices to plummet again in 2014–2016. US crude oil’s price history is marked by periods of high volatility correlating with geopolitical events, supply disruptions, technological advancements and global economic shifts.
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Oil CFDs enable traders to access the expansive oil market through leverage, offering increased exposure without the need to possess the physical asset. Trading Oil CFDs mean you do not actually buy crude oil but only trade in it with the expectation to benefit from its fluctuating prices. Additionally, as you trade on margin, by depositing only a small portion/margin of your account’s balance, you do not risk heavy amounts of money at once. West Texas Intermediate Crude Oil, known as WTI Crude Oil, is a type of crude oil that is one of the major benchmarks for oil pricing worldwide. It is a high-quality, light, sweet crude oil primarily produced in the United States, with a significant portion of it coming from the Permian Basin in West Texas.