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Announcements
  • Margin Increase – September 10

    Please see the table below for the margin increases on some Commodity instruments that will come into effect from Thursday 10th September. Please be aware that the increased margin rates will be applied to any existing open position, as well as to any new position opened. Please ensure you have sufficient funds for margin in your account to sustain your positions once the margin increase is applied. Learn more about Commodity Trading Conditions. If you have any questions, please get in touch with our customer support team.

Trading Crude Oil

You could argue that the world runs on oil. The U.S. alone consumes nearly 20 million barrels a day, an astounding number, when you consider that the average barrel can run 40 cars. Global demand for oil is strong, and as an investment, speculators buy and sell based on their opinions of the fluctuation in the market, whether do to pipeline initiatives, reserve supplies and even war.

Crude oil occurs naturally in underground rock formations. Extraction can be complicated and occurs both on and off shore. Crude oil needs to be refined for petroleum products like gasoline. Depending on the source, crude is labeled by its viscosity (light and heavy), and sulfur content (sweet or sour). Popular crude oil deliverable grades are West Texas Intermediate, U.K. Brent, Norwegian Oseberg Blend and others.

To trade oil as a CFD, you need to understand the elements of the contract. If you want to trade West Texas Intermediate, for example, look for USOIL, since that grade is traded on the New York Mercantile Exchange (NYMEX). If you think the price of oil will rise, you buy USOIL, multiplying the buy price by the number of contracts you want to trade, or barrels in this case.

There are many factors to consider when trading oil, including theories on peak production, where available oil reaches a peak level, flattens out, then begins a decline. Likewise, global warming has caused concern for many traders as the development of green energy sources diminishes consumption. In any circumstance, oil has proven a popular and exciting commodity to trade.

UK Oil Trading Chart

Past Performance: Past Performance is not an indicator of future results.

MARKET HOURS

You can trade oil Sunday 22.00 GMT to Friday 20.45 GMT. There is a one-hour break each day at 21.00 GMT.

ALL-IN-ONE PLATFORM

Trade oil alongside currencies on Trading Station, providing you with convenient, intuitive, one-click trading plus an advanced charting package.

TRADE FROM ANYWHERE

Access Trading Station on desktop, tablet and mobile to stay connected and informed on the go.

PRODUCT GUIDE

New to CFD? Learn the basics and get answers in our CFD Product Guide.