Trading Oil (WTI Crude)

What is Oil (WTI Crude)?

WTI Crude Oil is the benchmark for North American oil pricing and one of the most actively traded commodities globally. It's essential for traders interested in energy markets and correlated with currencies like CAD and NOK.

Trading Hours: Near 24/5 (peak: US session)

Key Price Drivers

Understanding what moves Oil (WTI Crude) is essential for developing effective trading strategies:

• OPEC+ production decisions
• US inventory data (EIA weekly report)
• Global demand forecasts and GDP growth
• Geopolitical tensions in oil-producing regions

Who Should Trade Oil (WTI Crude)?

How to Trade Oil (WTI Crude) with a Broker

Most retail traders access Oil (WTI Crude) through CFDs (Contracts for Difference), which let you speculate on price movements without owning the underlying asset. Here's what to look for:

1. Tight Spreads: Lower spreads reduce your trading costs on every position
2. Fast Execution: Critical for short-term strategies and volatile instruments
3. Risk Management Tools: Stop-loss orders, guaranteed stops, and negative balance protection
4. Platform Quality: Advanced charting, technical indicators, and mobile trading
5. Regulation: Always choose a broker regulated by a Tier-1 authority

Trading Strategies

Day Trading

Day trading Oil (WTI Crude) involves opening and closing positions within the same trading day, capitalising on short-term price movements. Requires fast execution, tight spreads, and understanding of intraday patterns.

Swing Trading

Swing traders hold positions for days to weeks, capturing medium-term trends. This approach requires less screen time and can suit traders with other commitments.

Position Trading

Position traders take longer-term views, holding for weeks to months based on fundamental analysis and major trend identification.