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. Market participants often fail to take full advantage of crude oil fluctuations, either because they haven't learned the unique characteristics of these markets or because they're unaware of the hidden pitfalls that can eat into earnings. In addition, not all energy-focused financial instruments are created equally, with a subset of these securities more likely to produce positive results. Key Takeaways If you want to play the oil markets, this important commodity can provide a highly liquid asset class with which to trade several decide what is appropriate for you a spot oil and if so what grade; a derivative product such as futures or options; or an exchange-trade product like an ETN or focus on the oil market fundamentals and what drives supply and demand, as well as technical indicators gleaned from charts. How Can I Buy Oil As An Investment? Here are five steps needed to make a consistent profit in the markets. 1. Learn What Moves Crude Oil Crude oil moves through perceptions of supply and demand, affected by worldwide output as well as global economic prosperity. Oversupply and shrinking demand encourage traders to sell crude oil markets, while rising demand and declining or flat production encourages traders to bid crude oil higher. Tight convergence between positive elements can produce powerful uptrends, like the surge of crude oil to $ per barrel in July 2008, while tight convergence between negative elements can create equally powerful downtrends, like the August 2015 collapse to $ per barrel. Price action tends to build narrow trading ranges when crude oil reacts to mixed conditions, with sideways action often persisting for years at a time. 2. Understand the Crowd Professional traders and hedgers dominate the energy futures markets, with industry players taking positions to offset physical exposure while hedge funds speculate on long- and short-term direction. Retail traders and investors exert less influence here than in more emotional markets, like precious metals or high beta growth stocks. Retail's influence rises when crude oil trends sharply, attracting capital from small players who are drawn into these markets by front-page headlines and table-pounding talking heads. The subsequent waves of greed and fear can intensify underlying trend momentum, contributing to historic climaxes and collapses that print exceptionally high volume. 3. Choose Between Brent and WTI Crude Oil Crude oil trades through two primary markets, West Texas Intermediate Crude and Brent Crude. WTI originates in the Permian Basin and other local sources while Brent comes from more than a dozen fields in the North Atlantic. These varieties contain different sulfur content and API gravity, with lower levels commonly called light sweet crude oil. Brent has become a better indicator of worldwide pricing in recent years, although WTI in 2017 was more heavily traded in the world futures markets after two years of Brent volume leadership. Pricing between these grades stayed within a narrow band for years, but that came to an end in 2010 when the two markets diverged sharply due to a rapidly changing supply versus demand environment. The rise of oil production, driven by shale and fracking technology, increased WTI output at the same time Brent drilling underwent a rapid decrease. law dating back to the Arab oil embargo in the 1970s aggravated this division, prohibiting local oil companies from selling their inventory in overseas markets. This ban was removed in 2015. Many of CME Group's New York Mercantile Exchange NYMEX futures contracts track the WTI benchmark, with the "CL" ticker attracting significant daily volume. The majority of futures traders can focus exclusively on this contract and its many derivatives. Exchange-traded funds ETFs and exchange-traded notes ETNs offer equity access to crude oil, but their mathematical construction generates significant limitations due to contango and backwardation. 4. Read the Long-Term Chart Image by Sabrina Jiang © Investopedia 2020 WTI crude oil rose after World War II, peaking in the upper $20s and entering a narrow band until the embargo in the 1970s triggered a parabolic rally to $120. It peaked late in the decade and began a torturous decline, dropping into the teens ahead of the new millennium. Crude oil entered a new and powerful uptrend in 1999, rising to an all-time high at $ in June 2008. It then dropped into a massive trading range between that level and the upper $20s, settling around $55 at the end of 2017. As of January 2021, it was trading at about $47. 5. Pick Your Venue The NYMEX WTI Light Sweet Crude Oil futures contract CL trades in excess of 10 million contracts per month, offering superb liquidity. However, it has a relatively high risk due to the 1,000 barrel contract unit and .01 per barrel minimum price fluctuation. There are dozens of other energy-based products offered through NYMEX, with the vast majority attracting professional speculators but few private traders or investors. The Oil Fund offers the most popular way to play crude oil through equities, posting average daily volume in excess of 20-million shares. This security tracks WTI futures but is vulnerable to contango, due to discrepancies between front month and longer-dated contracts that reduce the size of price extensions. Oil companies and sector funds offer diverse industry exposure, with production, exploration, and oil service operations presenting different trends and opportunities. While the majority of companies track general crude oil trends, they can diverge sharply for long periods. These counter-swings often occur when equity markets are trending sharply, with rallies or selloffs triggering cross-market correlation that promotes lockstep behavior between diverse sectors. Some of the largest oil company funds are SPDR Energy Select Sector Fund XLE SPDR S&P Oil & Gas Exploration and Production ETF XOP VanEck Vectors Oil Services ETF OIH iShares Energy ETF IYE Vanguard Energy ETF VDE Reserve currencies offer an excellent way to take long-term crude oil exposure, with the economies of many nations leveraged closely to their energy resources. dollar crosses with Columbian and Mexican pesos, under tickers USD/COP and USD/MXN, have been tracking crude oil for years, offering speculators highly liquid and easily scaled access to uptrends and downtrends. Bearish crude oil positions require buying these crosses while bullish positions require selling them short. The Bottom Line Trading in crude oil and energy markets requires exceptional skill sets to build consistent profits. Market players looking to trade crude oil futures and its numerous derivatives need to learn what moves the commodity, the nature of the prevailing crowd, the long-term price history, and physical variations between different grades.

Modul1 - Kaedah Trade FUTURES Crude Oil Risiko Rendah akan ceritakan tentang bagaimana untuk trade Crude Oil Futures (bukan CFD) yang modal minimum RM16k. Anda boleh trade dengan modal $150 Modul 2 - Syarat sah untuk mula trade dengan modal $150

Gain direct exposure to the crude oil market using CME Group West Texas Intermediate WTI Light Sweet Crude Oil futures, the world’s most liquid oil contract. WTI Crude Oil futures and options are the most efficient way to trade the largest light, sweet crude oil blend. Hedge to minimize the impact of potentially adverse price moves on the value of oil-related assets, or trade to express your views on oil price movements. Latest Energy news Features and benefits Deep, liquid market Over 1 million contracts of WTI futures and options trade daily, with approximately 4 million contracts of open interest. Global benchmark WTI is the go-to measure for the world oil price, with the producing and exporting record amounts of crude oil. ≥ 80% margin offsets Trade with other NYMEX oil contracts for significant savings and precise exposure. Physical settlement NYMEX WTI is closely connected to the spot market, reducing costs. Financial look-alike products offer an alternative to clients looking for cash-settlement. 60/40 US tax treatment Enjoy 60% long-term, 40% short-term treatment on capital gains. Futures leverage Control a large contract value with a small amount of capital. Used properly, futures are a powerful way to increase capital efficiency and exposure. Explore this product in depth WTI Crude Oil CVOL Index Track forward-looking risk expectations on WTI Crude Oil with the CME Group Volatility Index CVOLTM, a robust measure of 30-day implied volatility derived from deeply liquid options on WTI Crude Oil futures. PRODUCTS Micro WTI Crude Oil options Options on Micro WTI futures are now trading. Building on the strength and liquidity of Micro WTI futures, Micro WTI options can add versatility to your crude oil strategies. NYMEX WTI and the oil market ecosystem Spread NYMEX WTI with other liquid NYMEX energy benchmarks to easily capture inherent price relationships, and get cross-margin savings, operational efficiencies, and lower costs. NYMEX WTI Crude and NYMEX RBOB Gas Gasoline prices are impacted by crude oil price changes and can be traded with RBOB futures or RBOB as a spread to WTI. NYMEX WTI Crude and NYMEX Heating Oil and ULSD Crude oil costs account for 56% of the average price of a gallon of heating oil or ultra-low-sulfur diesel. NYMEX WTI Crude and NYMEX Brent Oil North Sea Brent represents the price of light, sweet crude oil in Europe. Trade the spread between these two crudes at NYMEX for increased efficiency. NYMEX WTI Crude and DME Oman Oil Trade the relationship between light sweet WTI and “sour” crude DME Oman crude, used primarily in Asia. Compare NYMEX WTI futures vs. other oil and energy products No management fee Unlike ETFs, pay no management fee with NYMEX WTI futures Trade around the clock 24 hour-access means no waiting for the ETF open as market events elections, weather events that impact oil prices unfold Unparalleled liquidity Enjoy significantly more daily liquidity than founds with other oil instruments Direct exposure Many of today’s oil and energy index ETFs use NYMEX WTI futures to get their oil market exposure No roll slippage Avoid the costly loss of correlation to oil market that many oil ETFs exhibit near the futures roll Direct exposure Easier to trade on oil price changes in futures vs. stocks No uptick rule Easily sell short with NYMEX WTI futures, no uptick rule or special requirements to worry about Trade around the clock Nearly 24-hour access enables you to react to off-hour news and events affecting the oil market Margin efficiency Basket of oil company stocks requires 50% margin paid upfront vs. 3%-12% margin of NYMEX WTI contract value, translating to greater buying power Key economic reports and factors that move markets Released on Wednesdays, EIA reports track US crude inventories levels stored for future use. Released on Tuesdays, API reports track total US and regional inventories and refinery operations data. When the 14 top exporting countries gather for OPEC meetings, the oil markets listen. These reports track use vs. capacity for available oil refineries. GDP reports track the health of the US economy, and in turn, consumer demand for gasoline. Cheaper natural gas affects oil demand as a viable energy alternative. Weather can impact major production sites and pipelines. Events such as war, financial crises and elections can affect oil policy and costs. Updates to policy can dramatically impact world oil supply—and in turn, prices. Courses Take self-guided courses on Crude Oil futures and options products. If you're new to futures, the courses below can help you quickly understand the Crude Oil market and start trading. Contact an Energy expert Connect with a member of our expert Energy team for more information about our products. Thank you for completing the form. A member of our team will be contacting you shortly. WTI Crude Oil CVOL Index Track forward-looking risk expectations on WTI Crude Oil with the CME Group Volatility Index CVOLTM, a robust measure of 30-day implied volatility derived from deeply liquid options on WTI Crude Oil futures. Looking for more? Explore our additional resources Products Resources Looking for more? Explore our additional resources Products Resources Looking for more? Explore our additional resources Products Resources Looking for more? Explore our additional resources Products Resources About Crude Oil Trade NYMEX WTI Crude Oil futures CL, the world’s most liquid crude oil contract. When traders need the current oil price, they check the WTI Crude Oil price. WTI West Texas Intermediate, a US light sweet crude oil blend futures provide direct crude oil exposure and are the most efficient way to trade oil after a sharp rise in US crude oil production. Use WTI Crude Oil futures to hedge against adverse oil price moves or speculate on whether WTI oil prices will rise or fall. Our diverse WTI futures and options suite provides more flexibility to trade oil with WTI Crude Oil price discovery. View delayed WTI Oil prices and WTI Oil price charts below. Looking for more? Explore our additional resources Products Resources Looking for more? Explore our additional resources Products Resources Looking for more? Explore our additional resources Products Resources

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