Why traders choose XM to invest in Oil markets?
Benefit from price movements in Brent and WTI crude.
It trades US and UK oil, the most actively traded commodity futures on the global market, and benefits from rapidly changing price increases and decreases.
- High volatility
- Changes in supply and demand cause large fluctuations in oil prices.
- High liquidity
- The high liquidity of crude oil leads to lower transaction costs.
- Low Spread
- Trade the world’s major energies with spreads starting at a low spread of 0.06 cents.
- Leverage 1:25
- Expand your trading potential by trading “black gold” using leverage.
- Short / long
- Crude CFDs can benefit from both rising and falling prices.
Crude oil is a liquid fuel source excavated from the ground. It is used in transportation, heating, power generation, and the manufacture of various petroleum products and plastics.
Major crude oil types
Of the hundreds of crude oils traded on the global market, Brent and West Texas Intermediate (WTI) are the two main types used as the global standard for oil prices.
- Brent Crude:
- Brent crude is drilled from the North Sea oil fields. Brent is the standard for crude oil in Africa, Europe and the Middle East.
- WTI Crude Oil:
- West Texas International Crude oil is drilled primarily in US oil fields in Texas, Louisiana, and North Dakota. WTI is the standard for North American crude oil.
Reasons to trade crude oil
Crude oil is considered a very valuable commodity because demand for crude oil is always at a high level.
Besides being the leading global energy source in the modern world, where energy and consumption needs are constantly increasing, it is also refined into high-demand daily necessities such as gasoline, diesel and other petrochemicals.
As a result, supply and demand are often under pressure.
How do oil prices fluctuate?
Oil prices are highly volatile and are primarily influenced by supply and demand and market sentiment.
When demand exceeds supply, oil prices rise. If demand for commodity futures is below supply levels, oil prices will fall.
The most common factors that affect supply and demand are:
- Natural disasters
- Geopolitical situation (war, social unrest)
- World economic performance
- Seasonal demand
- Population growth
- Delivery status
- Global oil inventories
- Advances in renewable energy
- Impact of OPEC
How can I trade crude oil?
XM allows you to trade CFDs for Brent (UK) and WTI (US) crude. You can open long (buy) or short (sell) positions based on expectations of price fluctuations in the oil market.
Posted by FXBonus
Please check XM official website or contact the customer support with regard to the latest information and more accurate details.
XM official website is here.
Please click "Introduction of XM", if you want to know the details and the company information of XM.
IronFX
Comment by Diletta
March 26, 2024
Awesome bonuses, good leverage. A few hiccups, but support rocks!