Engage with global oil markets by trading the world’s most popular commodities.

In this article, we explain the trading conditions of USOIL and UKOIL on Exness’s trading platforms.

Trading Conditions of USOIL and UKOIL on Exness

Spreads are always floating, so the spreads in the table above are yesterday’s averages. For live spreads, please check your platform.

Margin requirements for energies are fixed, regardless of the leverage, you use. Leverage for both USOIL and UKOIL is limited to 1:200.

Swap is the interest that is applied to all energies trading positions that are left open overnight. When the swap rate is negative, this means that a swap is deducted from a position. However, when there’s a positive figure for the swap rate, the amount is credited. Swaps occur at 22:00 GMT+0 each day, excluding the weekend, until the position is closed.

Please bear in mind that when trading energies, triple swaps are charged on Fridays to cover financing costs incurred over the weekend.

Exness does not charge swaps for the instruments marked in the table above if you have an extended swap-free status.

If you are a resident of a Muslim country, all accounts are automatically swap-free.

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How to be successful in the oil market

If you don’t know where to invest your money, then the oil market is a great option for you. Oil is attracting the attention of investors around the world. In this article, we will tell you how it happened and how to increase your income in the oil market.

Consider your investment in the oil market, then you will see the three key letters of CFD.

CFD is an abbreviation for contract difference. We know that oil is calculated per barrel. But you have to understand when you go to the market that you will not find real oil in containers. But what do you get? The idea is to predict the price of the asset and get the right prediction. As a result, when you come to the market, you earn money but don’t buy goods.

How are CFD prices formed? Prices match prices applied by the stock market on the Intercontinental and New York Mercantile Exchanges.

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Brent and WTI

Did you know that you will not only find one chart in the oil market? There are two main oil benchmarks you can invest in. They are Brent and WTI.

Brent is the standard for Asian and European markets. This benchmark value consists of 15 oil products in the Norwegian and Scottish shelf blocks of Brent, Ekofish, Oseberg, and Forties.

WTI stands for Western Hemisphere. Produced in American oil mines, primarily in Texas, Louisiana, and North Dakota.

There are two main differences between these two benchmark values. The first is location, second is the chemical formula. That’s why their prices are different, where WTI is cheaper than Brent. However, if you look at their charts, you won’t see a big difference in their movements.

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Market driver of Oil markets

Although there is a difference between the two benchmark oil values, there is no difference in the factors that affect them.

Demand/supply

The factors that affect every market are demand and supply. Remember a simple rule: when supply decreases – prices go up, when supply increases – prices fall. Conversely, when demand decreases – prices fall, when demand increases – prices also increase.

Why can demand/supply change? The decline in demand was due to the weak economy of major oil importers.

The decline in inventories was caused by conflicts, sanctions, and problems with oil drilling. An increase in inventories is always dependent on the decision of oil exporters to increase production.

Demand and supply are fundamental factors and all market drivers are based on them.

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Political events

Uncertainty, conflict, sanctions related to the largest oil production always affect oil prices positively. The idea is real; conflict leads to a cut in inventories, a decrease in inventories will increase the price of oil. All you need to do is follow the latest news.

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Market sentiment

Market sentiment is a supporting factor of economic events. A feature of the oil market is that prices change according to news, not facts. For example, when there is news about a problem that may occur in future inventory, the price will increase immediately. The market doesn’t even need data to confirm a drop in inventories.

The oil market is influenced by market sentiment, oil producers use it to their advantage. You should always keep this factor in mind when investing in oil. Following market sentiment is the best strategy for oil investors.

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How to predict market movement

News. As I explained above that prices depend on market sentiment. To catch this sentiment, you have to read the news and follow comments from the US, OPEC, and non-APEC allies such as Russia.

Report. To learn more about supply and demand issues, you should follow a report from the US Energy Information Administration. Here you can consider weekly crude oil inventory data ( check the economic calendar ) and the various forecasts for supply and demand that you can find on the website. You should also remember OPEC, because that organization releases reports too.

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What opportunities does the oil market provide for you

Volatility is the main factor that attracts investors’ attention. With large daily movements, the market provides a good opportunity to increase your income. But at the same time you have to remember that high volatility can also cause losses. To avoid negative results, you should always remember about risk management. The rest of the market also attracts gamblers. You will never get tired of investing in the oil market. News, reports that appear every day, and prices that keep moving up and down. If you are inspired by games, then investing in oil is for you.

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Conclusion

• Brent and WTI are the most traded benchmark values ​​worldwide.
• Demand and supply are fundamental factors that determine the direction of the market.
• Remember reports from the US Energy Information Administration and OPEC.
• Following market sentiment is the key to making big profits.
• Learn how to trade when volatility is high.