About Energy Trading
Crude oil is a naturally occurring petroleum product commonly used in energy production and manufacturing.
The purchase of crude oil is usually used for refining to produce the diesel, gasoline, fuel oil, jet fuel, plastics, cosmetics, pharmaceuticals and fertilizers that are needed daily. Therefore, its price has a huge impact on the global economy.
The two most commonly traded oil contracts are Brent Crude and West Texas Intermediate. Brent is extracted from the North Sea in both the UK and Norway while WTI is produced is the US, primarily the states of Texas, Oklahoma and North Dakota. Hence why you see some brokers name these CFD contracts as ‘US’ and ‘UK’ Oil.
Why Trade Energy With EC Markets
Capitalize on Volatility
Energy commodities like crude
oil experience huge amounts of
volatility, which creates profit
opportunities for scrupulous
traders.
Hedge Against Losses
Unmatched global dependence
on oil and other energy products
promotes long term economic
value, enabling traders to
safeguard portfolios.
Harness Global Signals
As the markets for energy
products are heavily influenced
by geopolitics, traders can
utilize geopolitical signals and
news to predict market
movements.
Leverage Macroeconomics
Crude oil prices react strongly
to news about inflation, GDP
growth, and interest rate
changes. Decoding their impact
provides traders with a trading
advantage and profit
opportunities.
