Crude oil is one of the most important commodities in the world. Being the precursor material for fuel, plastics, and other essential petrochemicals, crude oil is the foundation upon which the modern age is built. 

It is also an important instrument in the global economic system. Its trading price is a primary benchmark, and changes in the crude oil price can significantly affect virtually every economy that participates in the global financial system. 

Two of the most significant crude oil benchmarks are Brent crude and West Texas Intermediate (WTI). While the Brent tracks the price of crude oil primarily extracted from the North Sea region, the WTI tracks the price of oil produced in the US. 

In this article, we will learn about WTI crude oil trading, the factors that affect prices, and the instruments traders can use. 

Key Points

• WTI crude oil, extracted primarily from the Permian Basin in the U.S., serves as a high-quality benchmark for American oil markets due to its low sulfur content and low density, making it a sought-after grade for its ease of refining and transportation.
• Trading WTI crude oil involves futures contracts on the NYMEX, allowing traders to hedge against price volatility or speculate for profits, with significant price movements influenced by supply and demand, geopolitical tensions, and macroeconomic factors.
• The volatility of WTI crude oil prices, as evidenced by historical trends and forecasts, underscores its sensitivity to global economic conditions and geopolitical events, presenting both risks and opportunities for traders using various trading strategies and instruments.

What is WTI crude oil? ^[1,2] 

WTI crude oil is the label for crude oil extracted from the US, primarily from the Permian Basin. Crude oil is mainly drilled in Texas, North Dakota, and Louisiana and refined in the Midwest and the Gulf of Mexico before arriving at Cushing, Oklahoma, for physical exchange and price settlement. 

WTI is considered a high-quality crude because it has low levels of sulphur and low density – qualities that make it easier to refine and transport. Thus, as a “sweet” and “light” crude, WTI can fetch a higher price over crudes that have higher sulphur content or viscosity. 

The high quality and geographic origin make WTI the ideal candidate as the primary benchmark for the American oil market. It is the underlying commodity of the New York Mercantile Exchange’s (NYMEX) oil futures contract, and serves as a reference price for buyers and sellers. 

Together with Brent, WTI is considered one of the two most important oil benchmarks. The difference in prices between the two is known as the Brent-WTI spread. 

History of WTI crude oil ^[3,4]

WTI crude oil is primarily sourced from the Permian Basin, which lies in Texas and New Mexico. Thus, to understand the history of WTI, we should examine the history of oil and gas in Texas.

The discovery of oil in the Permian Basin dates back to 1921, when a Mitchell County, Texas, discovery well in the eastern Permian opened the Westbrook field to production. But it wasn’t until 1923 when Frank T. Pickrell and Haymon Krupp drilled their Santa Rita No. 1 oil rig near Big Lake, Texas, that the true beginning of the oil boom in the Permian Basin began.

During the 1930s, oil production in the Permian Basin remained high despite the challenges posed by the Great Depression. In fact, a record 92 million barrels were produced in 1938, making the Permian  Basin the largest oil-producing region in the United States.

The onset of World War II saw a spike in oil demand, bringing the spotlight back to the Permian Basin. Post-war, the region saw significant growth, driven by new technologies and seismic surveys that enabled the identification and extraction of previously inaccessible oil and gas reserves.

By the 1950s, the Permian Basin reached its first peak, with production exceeding prior levels. However, from the 1960s to the 1980s, major oil companies began an exodus from the Permian and other US oil plays, favouring offshore and overseas fields instead. The 1970s also saw challenges such as decreased output from mature fields and stricter environmental regulations.

The advent of hydraulic fracturing brought renewed vitality to the Permian Basin, when in 2010, producers started employing the process – along with 3D seismic imaging – to great success. By 2018, the Permian Basin had become the most productive oil field in the US, producing over 4 million barrels per day.

The increase in production in the Permian Basin helped the United States lessen its dependence on foreign oil. Today, the Permian Basin maintains crude output in excess of 5 million barrels per day, with producers enjoying soaring profitability, even during the 2023 low of USD 70 per barrel for WTI crude.

What is WTI crude oil trading? ^[5]

Instead of the spot market, crude oil is traded on futures markets. This serves to help traders anticipate the price of crude oil, avoiding the wild swings – and resulting economic impact – seen in oil prices during the oil crises of 1973 and 1979. 

Consequently, WTI crude may be traded using futures contracts on NYMEX, such as the highly popular CME Group West Texas Intermediate (WTI) Light Sweet Crude Oil futures. 

WTI crude traders use futures to hedge against price volatility, which can have a downstream impact on profitability. Such traders include companies involved in the crude oil supply chain, including refineries and petrochemical suppliers, as well as those operating in fuel-dependent sectors, such as airlines.

In contrast, retail investors trade WTI on a speculative basis for profit-driven motives. Such traders should avoid crude futures with physical settlement; that means you’d need to take physical delivery of barrels of crude oil.  

In April 2020, the price of WTI crude oil futures fell to a negative $37.63 per barrel shortly before expiration, indicating that traders were willing to pay to avoid taking delivery as storage facilities filled and demand slowed during the early stages of the COVID-19 pandemic [6]. 

Why trade WTI crude oil? ^[7]

As a major energy commodity, WTI crude offers traders many advantages.

Diversification

Oil prices and equities are uncorrelated, meaning their prices tend to move independently. Therefore, investing in WTI crude can provide diversification for a portfolio heavily focused on stocks.

However, investors must recognise that specific sectors, such as transportation and manufacturing, are more sensitive to the spot price of crude oil and should account for this when constructing their portfolios.

Inflation hedge 

Like all commodities, crude oil has intrinsic value, making it relatively inflation-resistant. This means that investing in crude during periods of high inflation can help keep up with rising consumer prices, although high storage costs may pose challenges.

Hedge against stock market dips

Because the primary drivers of WTI crude are supply and demand, the commodity may be unaffected by stock market downturns. Indeed, commodities such as crude have been found to perform well even as equities fall when interest rates increase.

Potential for speculation 

As we will discuss in detail later, the price of oil has been anything but stable. This volatility creates ample trading opportunities for those who speculate on oil, provided they are willing and able to take the risk. 

Historical trends of the WTI crude oil market 

The chart above shows the average price of WTI crude oil from 1999 to 2024, in US Dollars per barrel. 

As you can see, prices have been highly volatile, ranging from USD 20 to USD 100 per barrel over the past 25 years.

Let’s zoom in on a few recent high-volatility periods to understand what’s going on.

1999 to 2008 ^[8]

The average price of crude oil had been trending predominantly downwards throughout the 1990s, with the 1998 Asian Financial Crisis bringing new lows. Oil prices had just started to recover when the 9/11 terrorist attack in 2001 in New York caused a temporary drop. 

After that, WTI crude oil prices rose steadily, reaching an all-time high of USD 100 per barrel in 2008. The reason for this dramatic rise boiled down to demand far outpacing supply, especially increased consumption by China and India. The rest of the world was also experiencing robust economic growth, further driving oil prices higher. 

2008 to 2014 ^[9]

The swift rise of WTI crude oil to unprecedented levels was abruptly halted by the 2008 Financial Crisis, triggered by the collapse of the U.S. subprime mortgage market. By 2009, WTI averaged USD 60 per barrel, a far cry from its heyday just months prior. 

Over the next couple of years, oil prices recovered in tandem with improving global economic conditions. Political developments in the Middle East drove some volatility; in particular, supply disruptions during the Arab Spring in 2011 led to a temporary spike in oil prices. 

WTI crude prices remained high from 2011 to 2014, driven by continued geopolitical tensions, supply disruptions, and growing demand from emerging economies. But things would once again change, due to an unexpected development, 

2014 to 2018 ^[10]

In mid-2014, producers in the United States pioneered hydraulic fracturing, causing a boom in shale oil production. This created a supply glut as the United States became the world’s largest oil producer. 

In response, Saudi Arabia led OPEC (Organisation of the Petroleum Exporting Countries) to increase production to protect market share. The sharp increase in supply and decrease in demand caused average WTI crude oil prices to fall sharply, leading to one of the most severe downturns in oil prices throughout 2015 and 2016. 

Eventually, the oil market stabilised as global production was reduced, allowing oil prices to mount a gradual recovery in 2018. This was attributed to improving global economic conditions, supply disruptions in Venezuela and other countries, and the United States’ reimposition of sanctions on Iran.

2018 to 2022 ^[11]

After recovering in 2018, WTI crude prices reversed again, driven by continued U.S. oil production. The downturn continued throughout 2019 and worsened when the COVID-19 pandemic began. 

As the world went into lockdown, oil demand slowed dramatically, causing oil prices to free-fall. In 2020, US oil futures fell into the negative, a development that shook up the industry. 

Thankfully, the pandemic was soon brought under control. As the world began to reopen, oil prices rose, driven partly by supply shocks that caused prices to spike in 2022. 

WTI crude oil prediction ^[12]

According to the Dallas Fed Energy Survey for Q1 2024, oil executives are optimistic about WTI prices this year.

Prices per barrel are expected to range from USD 70 to USD 120, and the commodity is expected to end the year at USD 80.11 per barrel.

The latest round of predictions was slightly improved over December’s, which had WTI at a low of USD 51 and a high of USD 110, with an end-of-year prediction at USD 77.68 per barrel. 

These predictions are based on the assumption that the geopolitical situation remains unchanged. JPMorgan warns that crude oil prices could shoot up dramatically if Russia decides to cut oil production in retaliation for the sanctions levied against it for the invasion of Ukraine. 

What affects WTI crude oil prices?

Being a core commodity with an essential role in the global economy, we can expect WTI crude oil prices to be affected by supply and demand levels, macroeconomic factors, and geopolitical issues.

Supply and demand levels

Fundamentally, demand for crude oil is driven by strong economic growth and industrial production. Other significant drivers include transportation, such as logistics, aviation, and personal transportation. 

As such, high demand drives up WTI crude oil prices, while prices fall during periods of low consumption. This was clearly demonstrated during the COVID-19 pandemic, when global lockdowns drove WTI crude futures into hostile territory in 2020 ^[13].

The crude oil price is also sensitive to supply levels. Recall how the increase in US oil production due to the advent of hydraulic fracturing prompted the oil cartel OPEC to increase its own production in response. The sudden influx of oil caused a price crash in 2015 and 2016.

Macroeconomic factors and geopolitical issues ^[14,15]

Over the short term, WTI crude prices can be influenced by futures market dynamics and the release of macroeconomic reports. 

As explained, crude oil trading occurs through futures contracts, which are binding agreements that give one the right to purchase oil by the barrel at a predefined price on a specified future date. Under a futures contract, buyers and sellers are obligated to fulfil their respective obligations on the selected date.

This means that market sentiment can have an amplified effect on the pricing of futures contracts. If traders believe there is risk in the upcoming supply or that spare capacity is running low, they will price their contracts accordingly. 

Of course, traders do not simply make wild guesses in the dark; instead, they base their assumptions on official reports and data. Thus, reports such as OPEC’s monthly oil report, the International Energy Agency (IEA) oil market report, and weekly inventory data from both the US Energy Information Administration (EIA) and the American Petroleum Institute (API) also influence the price of WTI crude oil.

Additionally, specific geopolitical issues can significantly impact crude oil prices. Some of these include:

• War with oil-producing countries or oil-producing regions. One recent example is the Russian-Ukrainian war. Shortly after the invasion began, crude oil prices surged in March 2022 to above USD 110 per barrel. 
• Cartel actions. OPEC is a group of 13 oil-producing countries that together control 40% of the world’s oil output. The organisation attempts to influence oil prices by raising or cutting production. With the increase in US oil production, OPEC’s influence is no longer as severe, but its decisions continue to be closely monitored.
• Government policies. Green initiatives that mandate reductions in oil and gas use across industries could reduce oil demand. This may prompt oil producers to reduce supply, potentially triggering a price spike during periods of high demand, such as winter.

Types of WTI crude oil trading

While most WTI crude oil trading occurs in futures markets, these contracts are complex, carry high risk, and may be suitable only for highly advanced or experienced investors. 

Less-experienced retail investors seeking to access trading opportunities in the oil markets may find it helpful to use simpler instruments such as ETFs, stocks, or CFDs. 

Oil Exchange-traded Funds (ETFs) ^[16]

Oil ETFs offer indirect exposure to the WTI crude oil market by tracking baskets of stocks involved in the crude oil production cycle: prospecting and extraction, production, distribution, and retail of crude oil and petroleum by-products, as well as the commodity itself. 

There are several types of oil ETFs available on the market, differentiated by their areas of focus. Thus, it is essential to understand the fund’s objective and the securities that underpin it to better assess how well it fits your portfolio or investment objectives. 

It should be noted that oil ETFs are best suited to a longer-term investment strategy, given the potential for high volatility in the short term. Oil ETFs are available to buy or sell through online brokers. 

Oil and energy stocks 

While oil ETFs provide exposure to baskets of oil securities, oil stocks allow investors to focus on specific companies or entities in the WTI crude oil market. This will enable you to concentrate your position across a smaller number of well-performing oil or energy companies, without owning stocks you do not want. 

Note that holding individual oil stocks can be riskier than a broad-based energy ETF, as there is less diversification and losses may be larger than the market average. However, if all your picks turn in winning performances, you have the potential to make market-beating returns. 

Another drawback of oil stocks is that you may also need to invest more capital. For a less capital-intensive alternative, consider trading WTI contracts for difference (CFDs), as discussed below.

Oil Contracts-for-Difference (CFDs)

The high volatility of the WTI crude oil market can be beneficial for traders seeking to realize significant profits over a relatively short period. Of course, there is also a greater risk of significant losses. 

Oil CFDs are a popular way for traders to access opportunities in the WTI oil market. A type of financial derivative, a CFD is a contract that allows you to exchange the difference in WTI oil prices between the contract opening and closing dates. 

Essentially, Oil CFDs allow you to trade on the price movement of WTI crude over a time duration of your choosing. Should the price of oil move as you predicted, you can close the contract for a profit. If the oil price moves against you, you’ll close the contract at a loss. 

Unlike oil futures, WTI oil CFDs are settled in cash, whether a profit or a loss is made. There is no need for you to take physical ownership of the underlying commodity, eliminating the risk of physical storage.

How to trade WTI crude oil

Looking to trade WTI crude oil? Follow here’s a step-by-step guide to get you started. 

Start WTI crude oil trading.

1. Open a live account

Firstly, sign up for a Vantage trading account. You will need to open a Live account to trade WTI oil CFDs. 

Follow the on-screen instructions to apply for your trading account. Once your account is approved, you can fund it to start trading.

2. Decide which WTI crude CFD you will trade.

Vantage offers two types of Brent crude CFDs, as follows:

• WTI Crude Oil Cash CFD. This allows you to trade on the spot price of WTI crude. 
• Crude Oil Future CFD. This option lets you trade against the price movements of the oil futures market. Do be aware that oil futures are more complex and may be better suited to experienced or advanced traders. 

3. Research and analyse the WTI crude oil market

Unless you have a time machine or a fortune-telling crystal ball, you cannot find lasting success trading the oil markets without a firm grasp of what’s going on. 

Thus, it is essential to research and analyse the WTI crude market to understand its characteristics and how it responds to geopolitical events and market developments, enabling informed trading of oil CFDs. 

4. Build WTI crude trading strategies

As your knowledge of the WTI crude oil market grows and you get a better grasp of your trading style and preferences, you should start building your own set of trading strategies. 

This will help you identify opportunities and improve your decision-making in the highly volatile WTI crude oil market. 

Trade WTI crude oil using fundamental analysis

Fundamental analysis is a core discipline for any serious investor. It involves studying the relevant factors surrounding a security to analyse it. 

We’ve already discussed that for a commodity like WTI crude, key drivers of price include global supply and demand, as well as geopolitical and macroeconomic factors. Thus, fundamental analysis of WTI crude entails monitoring news reports and analysts’ views on the commodity. 

Here’s a recent example of fundamental analysis in the context of WTI crude trading. In February 2024, following news that Israel had rejected a ceasefire offer from Hamas, prices of crude oil futures rose by around 3.2% [17]. The rejection had squashed hopes for a swift end to the armed conflict, further threatening oil supply.

While Israel has only two oil refineries with an estimated production capacity of 300 barrels per day, the greater concern was that, in a prolonged conflict, additional Middle Eastern countries might be drawn in, reducing export levels. This supply squeeze could drive crude oil prices to new record highs, according to the World Bank ^[18]. 

Trade WTI crude oil using technical analysis

Technical analysis relies on data and indicators in a price chart to discern patterns and gauge the likelihood that a price trend will continue. 

It allows traders to ignore market noise and focus on price action, which is widely regarded as the purest source of information about what’s happening in the WTI crude market. However, it’s important to note that while past prices may hint at future events, technical analysis does not guarantee future outcomes. 

Nonetheless, technical analysis is a helpful tool for making trading decisions, including spotting potential entry and exit points. 

Let’s take a look at how to perform technical analysis on WTI crude oil prices, using two popular indicators – 3EMA and RSI.

3EMA for WTI crude oil trading

The screenshot above shows a price chart of WTI crude oil spot prices from July 2023 to April 2024. 

The red and green candlesticks make up the price chart. Superimposed over is the Triple Exponential Moving Average (3EMA), indicated by the green (20-day), yellow (50-day), and red (200-day) lines.

A moving average is a lagging indicator that shows the average price over a specified time period. Moving averages may be simple (all prices have equal weight) or exponential (the latest prices have more weight), 

Specifically, the screenshot above shows three exponential moving averages (EMAs) of the WTI spot price over the past 20, 50, and 200 days.

When a shorter-duration EMA crosses under a longer-duration one, a bullish trend is indicated. The reserve is also proper; when a shorter EMA crosses over a longer one, a bearish trend is indicated. 

Between August and October 2023, the price of WTI was in a bullish trend. This is reflected in the 20-day EMA (green line), which remained high above the other two EMA lines. 

Now, if you look at the right side of the chart, you’ll see another bullish trend forming, as indicated by the consecutive green candles. The green EMA line has stayed above the yellow EMA and recently broken through the red EMA. 

This hints that the WTI crude spot market may be entering a strong bull market, and the rally may last as long as the green EMA continues to diverge from the other two EMA lines. 

RSI for WTI crude oil trading 

The Relative Strength Index (RSI) is used to show when an asset or commodity is over- or under-traded. The index ranges from 0 (minimum trading) to 100 (maximum trading) and typically uses 30 and 70 as customary cutoff points. 

This means that when the RSI is below 30, it indicates under-trading and, thus, the price at that time is likely reasonable. If the RSI is above 70, it indicates the asset is overbought and the price is likely too high. 

Here’s another screenshot of WTI crude oil prices. The RSI is in the bottom half of the screen. The Index proper is the purple line, and the yellow line is the RSI moving average, which we will ignore for now. The purple shaded area represents the bounds between 30 (oversold) and 70 (overbought).

Earlier on, the 3EMA indicates that WTI spot prices are entering a bullish trend. When you look at the RSI on the right side of the screenshot, the upward slope of the purple line confirms bullish sentiment among traders. The good news is the RSI has yet to enter overbought territory – meaning there is headroom for the price to grow, lending further support to the expectation that the bull rally will last for a period of time. 

If, however, the RSI is already overbought at the start of the rally, the bullish trend may be short-lived, as traders may view the price as too high and seek a quick exit.  

Risk management when trading WTI crude oil

Crude oil is a highly volatile commodity, with numerous price swings throughout history, and WTI is no exception. The market is also sensitive to macroeconomic forces and geopolitical events, making it difficult to predict how prices will react. 

Hence, it is crucial to implement proper risk management measures when trading oil commodities. Investors should consider the following.

Proper trade sizing

An undisciplined trader may be easily swayed to make a larger bet in the hope of a larger payoff. This is highly risky and can lead to poor outcomes for WTI crude. Instead, an appropriately sized trade should be adhered to each time. 

As a general rule, each trade should risk no more than 1% to 2% of your capital, reducing as your account size grows ^[19].

Caution when using leverage 

Oil CFDs are a popular way to trade WTI crude. CFDs may be traded on leverage, which not only allows you to start trading with smaller capital, but also amplifies your trading outcome – whether it be profit or loss. 

This means that while leverage can help you make gains quickly, it can also make you exceed your starting capital (i.e., have a negative balance in your trading account). 

Given its double-edged nature, it is essential to use leverage with caution. It is advisable to use leverage only when you have developed sufficient experience and discipline to manage the associated risks. 

Setting stop-losses and take-profit levels

Traders should also consider two popular tools to help in risk management. These are stop-losses and take-profits, which are predetermined points on a price chart at which you will close your trade.

When used appropriately, stop-losses and take-profits help limit losses on a losing trade and prevent gains from being wiped out by a reversal by closing a profitable trade promptly. 

WTI crude oil trading strategies

Earlier, we mentioned that you should build your own set of trading strategies as you learn and hone your skills as a WTI oil trader. This is to help you instill discipline and focus in your trading. 

Here are some common WTI crude oil trading strategies.

Day trading

Day trading focuses on making extremely short-term trades that can range from a few minutes to several hours, or sometimes up to a day. Rarely do day traders hold WTI crude trades overnight.  

The aim is to capture returns from Brent crude price action throughout the trading day by profiting from very short-term price movements. Day traders often use leverage to amplify returns, but as discussed, doing so increases the risk of losses. 

Position trading

In contrast to day trading, a position-trading strategy involves holding a position in the WTI crude market over a longer time frame. The goal is to make a profit when the market moves in a favourable direction. 

Position traders may use both long and short positions to hedge against risk and to expand the range of trading opportunities in the crude oil market. This strategy is well-suited to a variety of WTI crude oil instruments, including oil stocks and ETFs.

Swing trading

Swing trading attempts to reap returns when the price swings from up to down or down to up over several days or weeks. This involves speculating on expected WTI crude price movements based on market sentiment, macroeconomic news, or geopolitical events. Some swing traders also rely on technical analysis to identify an upcoming swing. 

This trading strategy is slower paced than day trading, as traders have the option to keep their trades open for significantly longer durations – typically all the way until the swing runs its course. 

Read our guide on “Position Trading vs Swing Trading” to help you understand each strategy better.

Trend following

Trend following, or trend trading, is a simple idea at its core: trade with the trend, not against it. This means choosing short or long positions based on the overall price trend in the WTI crude oil market. 

Success in trend following hinges on correctly identifying the current price trend, determining how long it is likely to last, and having the discipline to react accordingly when the trend has ended. 

Trend traders often use technical indicators on a price chart to gauge trend momentum and direction. 

Sentiment trading

As the name suggests, sentiment trading is a strategy based on market sentiment toward WTI crude oil prices. When the outlook is favorable and prices are expected to rise, a sentiment trader may open a long position to capture profits. When the outlook turns negative, a sentiment trader may opt to use short selling instead. 

While sound in theory, the challenge stems from the volatile nature of the WTI crude oil market. Significant experience is required to gain a good grasp of the market and filter out noise to focus on what truly matters. 

News trading

News trading is similar to sentiment trading in that trades are made as news events are announced. In particular, earnings reports from WTI crude oil companies, political announcements such as elections, and economic reports like inflation readings and employment levels are especially potent in a news-trading strategy. 

To be successful, a news trader must be able to evaluate relevant news reports and form the correct theories to support the trades they make.

WTI crude oil trading hours

The trading hours for WTI crude depend on where you choose to carry out your trading. If you’re trading WTI futures, you’ll need to adhere to the trading hours of the exchange on which they are offered, such as the NYMEX. 

Meanwhile, if you choose to trade WTI crude using other instruments such as CFDs, stocks, and ETFs, you will be able to place trades through the online brokerage you choose. 

WTI crude futures trading hours on Intercontinental Exchange Inc (ICE) ^[20]

City	Trading hours	Pre-open
New York	8pm to 6pm (next day)	7.45pm
London	1am to 11pm (next day)	12.45am
Singapore	9am to 7am (next day)	8.45am

Market open time for Monday morning/Sunday evening is 23:00 London (local time)

WTI crude CFDs 

Vantage offers trading in WTI CFDs during the following time periods:

Description	Symbol	Trading time (GMT+2)
WTI Crude Oil Cash	USOUSD	Monday – Friday:01:00-24:00

Key takeaways for WTI crude oil trading

WTI crude oil is the leading benchmark for the US oil market, which has once again risen in prominence with the advent of hydraulic fracturing. Thus, WTI offers an alternative to Brent for those seeking to capture potential returns in the oil market.

While geographically distinct from Brent, WTI is also affected by many of the same factors, such as global economic slowdowns and OPEC actions and decisions. This explains why Brent and WTI prices generally move in similar directions, but there are also instances when one rises relative to the other. 

One key characteristic of WTI is its high volatility, with average prices ranging from USD 20 to USD 100 per barrel in just two short decades. This is due to the commodity’s sensitivity to geopolitical events, economic news, and global developments. 

WTI trading is primarily conducted via futures contracts, which are a highly advanced trading method that may not be suitable for all investors. Another disadvantage to retail investors is that oil futures employ physical settlement – meaning the means to take delivery of barrels of crude oil is required. 

To access opportunities in the WTI crude oil market without dealing with futures, consider oil stocks, energy ETFs, and WTI CFDs as a more manageable option. 

Trade WTI crude CFDs with tight spreads at Vantage

Vantage offers tight spreads starting from 0.0, allowing you to trade WTI crude via CFDs at minimum cost. Enjoy lower costs with no deposit fees, monthly rollover fees, and other hidden fees. 

Pick from desktop or online trading platforms MT4, MT5, or trade anywhere on the go with the Vantage mobile app. All our platforms are packed with powerful features that allow you to react instantly to the latest oil market developments. Deploy long and short strategies to potentially capture gains no matter which way the market goes, and manage risk with our array of flexible tools. 

Trade Brent crude via CFDs with Vantage and experience the difference. Sign up now and enjoy a deposit bonus* to boost your first trade! 

*Terms & Conditions apply.

Frequently Asked Questions (FAQs)

Q1. What is the spread on WTI crude oil assets at Vantage?

We offer tight spreads for WTI CFDs, starting from as low as 0.0. Trade at minimum cost with Vantage. 

Q2. What are the risks of WTI crude oil trading?

When trading WTI crude oil, one of the main risks is volatility. As an essential commodity that underpins the global economy, WTI is susceptible to various economic and political factors. 

Traders should be aware that wild price swings can occur when trading WTI and should implement appropriate risk-management measures. They should also expect to invest substantial time and effort in studying the market and monitoring news, trends, and developments that could affect WTI crude oil prices. 

Q3. What are the additional tips for trading WTI crude oil?

The complexity of crude oil extraction, production, distribution, and storage can lead producers to be slow to respond to demand changes, contributing to high price volatility. 

As such, it’s important for traders to respond quickly to capitalize on potential opportunities. To this end, investors should consider an online brokerage that offers fast, reliable connectivity and feature-rich trading platforms with a range of flexible, powerful tools. 

Q4. Does Brent crude price affect WTI price?

With the United States now a major global crude oil producer, WTI and Brent prices have been observed to be correlated. Both indices often move in the same direction because Brent and WTI are often affected by the same developments, such as a global economic recession.

However, differences in supply can cause their price trends to diverge. For instance, WTI is based on oil production in landlocked regions of the United States; this is considered a more stable source of supply and thus more resilient to troubling geopolitical events affecting other parts of the world. Brent, as a global benchmark, is more sensitive to a broader range of events. 

Please read our guide on the difference between Brent Crude and WTI Crude to help you understand how fluctuations in these prices can impact the global oil market. 

Q5. Can I practise WTI crude oil trading?

Yes. Traders and investors wishing to practise WTI crude trading and test out trading strategies on paper may do so by signing up for a free Vantage demo account. There are no fees or minimum deposit required to practise WTI oil trading with a demo account.

References