How to start investing in Oils (Energies) on FXCM platforms?

Start investing in the Oil market on FXCM

It could be argued that the world runs on oil.

The United States alone consumes nearly 20 million barrels a day, a surprising 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 views on market fluctuations, be it pipelines, supply reserves, and even war.

Crude oil occurs naturally in underground rock formations.

Mining can be complicated and takes place both on land and offshore.

Crude oil must be refined to make petroleum products such as gasoline.

Depending on the source, crude oil is labeled by its viscosity (light and heavy) and sulfur content (sweet or sour).

The most popular grades of crude are West Texas Intermediate, UK Brent, Norwegian Oseberg Blend, and others.

Start investing in Oils on FXCM

Trade Energy CFDs with many advantages

To trade oil as a CFD, you need to understand the elements of the contract.

If you want to trade the West Texas Intermediate, for example, look for USOIL, since that grade is listed on the New York Mercantile Exchange (NYMEX).

If you think the price of oil will rise, you buy USOIL, multiplying the purchase 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 peak production theories, where available oil peaks, flattens out, then a decline begins.

Likewise, global warming has raised concern for many traders as the development of green energy sources reduces consumption.

Either way, oil has proved to be a popular and exciting commodity to trade.

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