Oil Trading: How to Trade Oil Spot Prices, Options and Futures IG International

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how this product works, and whether you can afford to take coinspot review the high risk of losing your money. We also explain what oil blends are (like Brent and WTI), and ways you can speculate on live crude oil spot prices without having to buy physical barrels.

  1. You should consider whether you understand how this product works, and whether you can afford to take the high risk of losing your money.
  2. While your trade is open, you should continue to perform technical analysis, identifying key turning points in the market.
  3. WTI crude oil trades from Sunday through to Friday, 5 PM to 4 PM CT.
  4. For our undated ‘spot’ markets, we use the two nearest futures to calculate the price.
  5. If you check live prices on Saturdays, you will always see the last recorded WTI crude price from the previous Friday.

The US investment bank Goldman Sachs estimates the proportion of crude oil used for primary materials production to be 45 per cent. Because the supply of crude oil is limited but demand is constantly growing, the price of oil is also continuously rising. The US investment bank Goldman Sachs estimates the proportion of crude oil used for primary materials production to be 45 percent. Crude oil is one of the most in-demand commodities, with the two most popularly traded grades of oil being Brent Crude and West Texas Intermediate (WTI). Crude oil prices reflect the market’s volatile and liquid nature, as well as oil being a benchmark for global economic activity. The oil price charts offer live data and comprehensive price action on WTI Crude and Brent Crude patterns.

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Oil prices are customarily quoted in dollars (USD) around the world, not only in the US or when referring to US crude oil. Oil prices are surging as geopolitical risks and supply concerns boost bullish sentiment despite economic concerns. At expiry, we’ll roll over your futures contract into the next month, unless you manually close your position. Please note that there may be a difference in the price for the next month’s contract.

Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors. We advise you to carefully consider whether trading is appropriate for you based on your personal circumstances. This information is made available for informational purposes only. It is not a solicitation or a recommendation to trade derivatives contracts or securities and should not be construed or interpreted as financial advice. DailyFX Limited is not responsible for any trading decisions taken by persons not intended to view this material. You can use CFDs to trade on oil’s spot price, or the prices of oil futures or options contracts, without having to own any actual oil.

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Oil trading is the buying and selling of different types of oil and oil-linked assets with the aim of making a profit. As oil is a finite resource, its price can see massive fluctuations due to supply and demand changes. From time to time new oil resources come online — like Canadian oil sands or US crude oil from oil shale — these add to the global supply. New sources can exert a downward force on oil prices, even in times of heavy demand. The best time of day to trade oil is when the markets are most active. These periods can occur quite regularly as oil is such a popular and volatile market.

Brent crude oil trades six days a week, so based on which day you’re looking at crude oil spot prices, you may be getting the last recorded live price. At local time on Sundays for your chosen exchange, you’ll almost certainly get the last Brent crude oil spot price that the market closed with. The abbreviation indicates one barrel of crude oil, but you may see Gbbl (one billion barrels), as well as Mbbl (one million barrels) or Kbbl for one thousand barrels. For example, you can see that Brent crude oil spot prices are quoted by the barrel (bbl), as are West Texas Intermediate (WTI) oil prices on global futures exchanges like NYMEX. On an international level there are a number of different types of crude oil, each of which have different properties and prices. The types of crude oil come from regions as diverse as Alaska North Lope, Arab Light or Zueitina in Libya.

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Other reference oil types include Leona, Tijuana, Alaska North Slope, Zueitina or Urals. The different types of crude oil come from regions as diverse as Alaska North Lope, Arab Light or Zueitina in Libya. These are standardized products used to determine the prices for all other types. Besides its primary role as the most important beaxy exchange review energy source, crude oil is also an essential raw material for manufacturing plastics. Because the supply of crude oil is limited but demand is constantly increasing, the price of oil is also continuously rising. Because crude oil is needed to manufacture other primary materials, it is the world’s most important commodity.

This guide explains exactly what the oil spot price represents and what factors determine the constantly moving live price. While your trade is open, you should continue to perform technical analysis, identifying key turning points in the market. It’s also important to keep up to date with any news or data releases that could move the price of oil. Read on to learn more about the live crude oil price you see historically, or on active trading days.

Oil (WTI) Snapshot

Simply fill out our online form to open an account – there’s no obligation to add funds until you want to place a trade. Marko has been working on the road for over 5 years, and is currently based in Europe. Alongside writing and editing, Marko works on projects related to online technology and digital marketing. Extraction costs are typically higher umarkets review for new resources, meaning these oils are only competitive in lower-supply, high-price environments. Brent crude oil opened the year of 2020 amidst an uptrend that began in November 2020 from $38.84 per barrel and continued the rally to $68.72 per barrel until early March 2021. All market data (will open in new tab) is provided by Barchart Solutions.

In fact, Brent crude is used as the world’s benchmark for oil prices – almost two thirds of futures traded are on Brent oil. Our oil spot prices are based on the two nearest futures on the market in question. Today’s Brent crude oil spot price is at $91.47 per barrel, up by 0.15% from the previous trading day. In comparison to one week ago ($87.64 per barrel), Brent oil is up 4.37%. Crude oil is by far the world’s most important energy source and the price of oil therefore plays an important role in industrial and economic development.

Oil prices are typically quoted per barrel — this is the same for the Brent crude oil spot price. Oil trading works by enabling you to take a position on whether futures contracts will rise or fall in value. Oil futures are contracts in which you agree to exchange a set amount of oil at a set price on a set date. For example, in April 2020, traders’ worries over tightening oil-storage capacity amid the coronavirus caused crude oil futures to fall dramatically.

In periods of economic growth, the demand for oil increases to meet the needs of industries such as energy, transport, manufacturing and pharmaceuticals. If demand outweighs supply, then the price of oil will be driven up. They are used as benchmarks for global oil prices, as well as economic health. The highest ever historical WTI crude oil price was at $141.63 per barrel. Other significant recent historical highs include $77.74 per barrel in Jul, 2006 and $109.50 per barrel in Aug, 2013. As with all commodities, oil prices are driven by supply and demand.

West Texas Intermediary is America’s benchmark oil – WTI is slightly sweeter and lighter when compared to Brent.

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