Crude Oil Prices & Investing

Everything you need to know about crude oil trading, along with strategies for investing in different market conditions. Understand fundamental and technical analysis, explore historical price trends, and identify factors influencing crude oil price movements. Learn about the different types of crude oil, trading strategies, and whether investing in crude oil is right for you.

How to Invest in Crude Oil Trading

3 Steps to Investing in Crude Oil:

Download Metatrader 4

Familiarize yourself with crude oil trading through a demo account on Metatrader 4 (MT4), the world’s leading trading platform. It provides access to a wide range of products, including indices, currencies, shares, and commodities.

Open a Demo Account

Start trading crude oil by opening a demo trading account with WisunoFX, a globally regulated broker ranked 3rd on Finance Magnates’ list based on traded volume on the MT4 platform. Join the crude oil investment action today!

Begin Crude Oil Trading

The traditional method of investing in crude oil involves entering the market and purchasing derivative products such as options, futures, or exchange-traded products (ETFs) for Brent Crude and West Texas Intermediate (WTI).

How to Trade Crude Oil

You can trade crude oil through various methods:

Futures

Predict oil price movements in the future.

Spot

Trade the current market price for oil.

ETFs

Track oil performance through exchange-traded futures contracts.

Options

Take advantage of active market volatility.

Single Stocks

Take long or short positions on oil companies.

Stocks

Buy shares of oil companies and receive dividends.

What is Crude Oil?

Crude Oil Definition

Crude oil is a mixture of hydrocarbons in liquid form, found in underground reservoirs (petroleum). It is essential for electricity, heating, and transportation, serving as the base for many products, commonly referred to as "black gold." Crude oil trading attracts investors due to its attractive dividend income, high volatility, and potential for share price appreciation.

Types of Crude Oil

1. Very Light

Includes gasoline and jet fuel; evaporates quickly.

2. Light

Used for fuel oils; considered volatile and toxic.

3. Medium

Most commonly used due to low volatility and high viscosity.

4. Heavy

The heaviest and most viscous type.

World's Benchmark for Crude Oil Prices

The two primary benchmarks for crude oil prices are:

WTI Crude Oil

Extracted and produced in the U.S., it is typically associated with lighter oils used for gasoline production.

Brent Crude Oil

Refined in Northwestern Europe, mainly used across Europe and Africa.

Crude oil price fluctuations are influenced by OPEC production decisions, geopolitical tensions, and crude stockpiles, impacting supply and demand.

Crude Oil Price Forecast

Goldman Sachs projects crude oil prices could rise to $90 per barrel, fueled by increased demand and decreased supply. Oil prices surged over 80% in 2021, and Brent Oil is currently above $80, the highest since 2014. Market sentiment remains bullish, with investor behavior influenced by economic conditions and travel demand.

Crude Oil Technical Analysis

Recent price trends have shown crude oil reaching three-year peaks due to output disruptions. The crude oil market has been trending upward, raising inflation concerns among investors. Key technical indicators suggest potential volatility, particularly in Brent and WTI prices, influenced by OPEC's output decisions.

What Affects Crude Oil Price Movements?
5 Key Factors

1. Geopolitics

Political stability and conflicts can significantly influence prices.

2. Supply and Demand

Increased demand drives prices up; excess supply leads to price drops.

3. OPEC

Increased demand drives prices up; excess supply leads to price drops.

4. Market Sentiment

Investor speculation impacts buying and selling behavior.

5. Consumer Consumption

Seasonal increases in driving and travel can raise demand and prices.

Is Crude Oil a Good Investment?

Crude oil attracts both day and long-term traders due to its liquidity and volatility, presenting numerous opportunities despite demand fluctuations. Investors can choose from various sectors, including refining, exploration, and distribution.

Crude Oil Trading Strategies:

Day Trading

Buy and sell oil within the same day to capitalize on small price movements.

Swing Trading

Hold positions for days or weeks, aiming to benefit from anticipated market changes.

Trend Trading

Follow the price direction, entering trades based on identified trends.

Position Trading

Long-term strategy involving holding positions for months or years based on market analysis.

Why Trade Crude Oil with WisunoFX?

Industry Essential

Crude oil is a crucial energy source with widespread industrial applications.

Strategic Position

Prices are highly volatile due to geopolitical and economic factors.

Enormous Trading Volume

Crude oil is recognized as the most traded commodity globally.

Crude Oil’s History

Understanding historical price movements can reveal significant investment opportunities.

Start Crude Oil Trading in 3 Simple Steps

1. Open Your Account

Complete the Live Trading Account application. After identity verification, your account will be set up.

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2. Fund Your Account

Deposit funds using a credit card, E-Wallet, or bank transfer to begin trading.

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3. Start Trading

Trade on any device, including PC, Android, iPad, iPhone, or via a web browser.

FREQUENTLY ASKED QUESTIONS

What is the stock symbol for crude oil trading?

US Oil (WTI)
UK Oil (Brent)

Which are the top five crude oil-producing countries?

Saudi Arabia
USA
Russia
Canada
China

How to trade and buy crude oil?
You can trade crude oil by purchasing options and futures through a commodities exchange, buying shares of an oil ETF, or investing in shares of oil companies.
Why is crude oil important?
Crude oil is a primary energy and fuel resource. Various industries, including plastic manufacturing, airlines, and agriculture, rely heavily on crude oil.
How many gallons are in a barrel of crude oil?
A barrel contains 42 gallons of crude oil.
How many liters in a barrel of crude oil?
A barrel holds 159 liters of crude oil.
How and where to buy crude oil stocks?
You can purchase options and futures through a commodities exchange or buy shares of an oil ETF. Additionally, you can buy shares of oil companies through a brokerage.
How does OPEC influence the supply of crude oil?
OPEC sets oil production targets and quotas for its members, significantly impacting oil prices and supply levels.
How does crude oil price affect the price of gas?
Crude oil is the main component in gasoline production, so fluctuations in crude oil prices directly affect gasoline prices.
When does the crude oil market open?

Market timings vary depending on the product and contract type (spot rate or futures contract)。 You can check the timings on Metatrader 4 (MT4) by right-clicking on the product (e.g.,‘WTI’) and selecting ‘Specifications’。
For example (based on MT4 server time):
Brent contract trade timings: 03:01-23:59 (Friday 23:55)
WTI contract trade timings: 01:01-23:59
WTI Futures: 01:01-23:59

Why is crude oil called “black gold"?
Crude oil is often referred to as "black gold" due to its high value and expense, similar to gold. It is extracted from underground and has a black color.