Trade the price of Oil CL Commodity CFDs

In June, OPEC and its allies agreed to extend production cuts of 3.66 million barrels per day until the end of 2025, with additional voluntary cuts of 2.2 million barrels per day extending until September this year. Many websites report crude oil news, but only a few broadcast the breaking news and current prices. Crude is the raw material that is refined to produce gasoline, heating oil, diesel, jet fuel, and many other petrochemicals. It comes in many different grades, and the fundamentals are different because it is a raw product. Light, sweet crude oil is the most popular grade of crude oil being traded, because it is the easiest to distill into other products, and it is traded on the New York Mercantile Exchange (NYMEX).

Crude Oil Contract Specs

• Once you have access to the futures trading market, you can place trading orders much as you would with stocks or ETFs.
• By understanding the intricacies of the crude oil market and implementing sound trading practices, traders can find many profitable trading opportunities.
• If you want to gain exposure to the oil market and potentially capitalise on some of the profitable opportunities yourself, learning how to trade oil CFDs could be a good method to do so.
• 82% of retail investor accounts lose money when trading CFDs with this provider.
• Earlier in the article, we explain the main differences between Brent Crude and WTI, one of them being the location the oil comes from.

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.

USOIL technical analysis

For example, tensions in the Middle East have historically had a significant impact on oil prices. We use powerful platforms MetaTrader 4 and MetaTrader 5 to provide our clients with an easy-to-navigate, transparent trading platform that can be downloaded to your computer or mobile device for simple market monitoring. As well as lightning-fast order execution and restriction-free trading, we offer our clients state-of-the-art trading tools and market analysis to give them the insights they need to trade oil CFDs. In this article, we’ll define what oil CFDs are, how they fit into the oil market and what you’ll need to know before you start trading oil CFDs as an individual trader. 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.

Easy to trade

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. The price of WTI is often compared to other crude oils, such as Brent Crude, to assess price differentials and trends in the global oil market. CFDs are a type of derivative financial product that allows traders to get exposure to a market like oil trading without having to take possession of an underlying asset. CFD trading works by creating an agreement between an investor and a CFD broker — or more simply a buyer and seller — to exchange the difference in value of the underlying asset between the opening and closing of the contract. Trading crude oil CFDs can be an exciting and potentially profitable venture for traders interested in commodities.

Understanding Crude Oil

Many CFD brokers provide the facility to speculate on the price of oil futures contracts but contract sizes are typically much smaller than standard futures contracts. Crude oil prices and related market news are available Crude oil cfd online, often for free. For example, MarketWatch provides up-to-date price quotes, headlines, and commentary. The Reuters news service is another free site with a commodity-specific portion that shows current prices.

Determine whether you prefer short-term or long-term trading strategies and select an approach that aligns with your portfolio and goals. Establish risk management strategies, including the use of stop-loss orders and limit-close orders, to control potential losses. Remember not to solely rely on third-party generated chart patterns on our platform to make your trading decisions, conduct your own due diligence using technical and fundamental analysis.

Today, the world’s economy is largely dependent on fossil fuels such as crude oil, and the demand for these resources often sparks political unrest, as a small number of countries control the largest reservoirs. Like any industry, supply and demand heavily affect the prices and profitability of crude oil. The United States, Saudi Arabia, and Russia are the leading producers https://investmentsanalysis.info/ of oil in the world. Crude oil trading offers excellent opportunities to profit in nearly all market conditions due to its unique standing within the world’s economic and political systems. Also, energy sector volatility has risen sharply in recent years, ensuring strong trends that can produce consistent returns for short-term swing trades and long-term timing strategies.

IG International Limited receives services from other members of the IG Group including IG Markets Limited. IG International Limited is licensed to conduct investment business and digital asset business by the Bermuda Monetary Authority. If you need to build more confidence in your trading skills, open a free demo account with us. Plus500CY is the issuer and seller of the financial products described or available on this website.

Oil CFDs enable traders to access the expansive oil market through leverage, offering increased exposure without the need to possess the physical asset. The oil and gas industry encompasses different types of oil, such as crude oil, no-lead gasoline, natural gas, and heating oils. Among these, crude oil remains the largest and most widely traded sector, sourced from various points of origin worldwide. You can open your first CFD trade on oil by clicking the commodities section in the top left toolbar of our trading platform. The price difference between the oil markets are based on the commodities’ varying properties. Both Brent crude and US crude are light in nature and can be easily refined and processed by petrol manufacturers.