Crude oil is one of the most actively traded commodities in the world. It moves on real-world supply and demand, geopolitics and the dollar — and it can be brutally volatile. Here's a grounded introduction.
WTI vs Brent
There are two main benchmarks:
- WTI (West Texas Intermediate) — the US benchmark.
- Brent — the international benchmark, priced off North Sea oil.
They track each other closely; the gap between them (the "spread") reflects regional supply and shipping dynamics.
What moves the price
- Supply — OPEC+ production decisions, US shale output, inventories and outages.
- Demand — global growth, travel, seasonality and the broader economic cycle.
- Geopolitics — conflict or sanctions in producing regions can spike price overnight.
- The dollar — oil is priced in USD, so a stronger dollar tends to weigh on it.
Why it demands respect
Oil is volatile and headline-driven. Prices can gap hard on weekend news or inventory reports. Leverage on oil futures or CFDs amplifies that — review leverage and margin before you size up.
Trading it sensibly
- Watch the weekly inventory reports and OPEC+ calendar — they're scheduled volatility.
- Trade clear support and resistance on the 4H/daily rather than chasing intraday spikes.
- Keep risk fixed per trade with the risk/reward calculator, and give stops enough room for oil's range.
Oil moves on the real world. Trade the chart, but never ignore the calendar.
Education only — not financial advice.