OIL

OIL - Commodities

Instrument which price is based on quotations of the current price of Brent Crude OIL quoted on the UK regulated market.
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Past performance or future forecasts does not constitute a reliable indicator of future performance.
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ABOUT INSTRUMENT

Invest in OIL CFD

Oil is a highly valuable commodity that attracts the interest of many investors. For those looking to diversify their investment portfolios, investing in oil can be a profitable opportunity.

Thanks to the XTB offering, it’s possible to invest in oil using one of the most dynamic ways - contracts for difference (CFDs).

Learn more about CFD investing at XTB here.

Investing in oil can be a promising avenue; however, it requires caution due to the volatility of the oil market. The price of oil can experience significant fluctuations, similar to gas, which highlights the importance of understanding the market dynamics that influence its value. Oil investments come with risks due to the unpredictable nature of the market, but they can also offer attractive returns if approached with careful consideration of risks and requirements. Thorough research is essential before making any oil-related investments.

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Interesting facts

Oil Measurement: The 42-Gallon Barrel: Traditionally, crude oil is measured in barrels, with each barrel equivalent to 42 US gallons (approximately 159 liters). This standard measurement was officially adopted in 1866 in Titusville, Pennsylvania.

Petroleum's Ancient Uses: Crude oil has been used for over 5,000 years, primarily in medicine and cosmetics. Ancient civilisations used "rock oil" for treating various ailments like headaches, toothaches, and even straightening eyelashes.

Global Oil Production Rankings: The United States is the world's largest producer of oil, followed by Saudi Arabia and Russia. These countries play a crucial role in global oil supply, accounting for a significant portion of world production.

Oil's Vital Role in the Economy: Crude oil is a critical natural resource, powering various sectors of the global economy. It directly contributes to about 2.5% of world GDP and accounts for one-third of humanity's primary energy supply.

Refining and Diversification: Crude oil is refined into various products, including gasoline, diesel, jet fuel, heating oil, kerosene, asphalt, and lubricants. Additionally, oil by-products are utilised in the manufacturing of ink, clothing, detergents, and bandages, making oil a versatile commodity.

First Successful Oil Well: The first successful oil well in North America was drilled in Oil Springs, Ontario, Canada, in 1858. Remarkably, this field is still producing a small quantity of oil today.

Oil's Origin and Collection: In the past, crude oil was collected from natural seeps where it oozed to the surface. People would fill buckets from these seeps and burn the crude for fuel. In 1854, the Pennsylvania Rock Oil Company became the first to drill for oil industrially.

Oil's Eponym "Petroleum": The term "petroleum" is derived from Ancient Greek, with "petra" meaning "rock" and "élaion" meaning "oil." This etymology reflects the nature of the resource found in rock formations.

Oil's Crucial Energy Demand: The world's demand for oil reached over 98 million barrels per day in 2023, representing an all-time high.Growing emerging market economies continue to increase their demand, despite fluctuations in oil prices.

Crude Oil Production and Consumption: Every day, over 4.20 billion gallons (15.89 billion liters) of liquid fuels are utilised, amounting to more than 1.51 trillion gallons (5.72 trillion liters) annually. Crude oil and its derivatives are essential to various industries, making it a sought-after commodity by investors.

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Latest news

Keep your finger on the pulse with our latest news

Risk sentiment shaky as Nvidia tries to stage...

21 November 2024

BREAKING: OIL loses after EIA inventories...

20 November 2024

Chart of the Day - OIL (19.11.2024)

19 November 2024
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GET ACCESS

How to trade OIL with XTB?

1. Open an account

Complete the form and send relevant documents - all without unnecessary formalities. The opening of an account depends on an appropriateness assessment, verified by a test.

2. Make a deposit

Choose a deposit method convenient for you from a range of available ones, including instant and free payments.

3. Start investing

Choose from 20+ CFD commodities and 6100+ other instruments.

1. Download the app

Visit your mobile store and download our app completely for free

2. Open an account

Complete the form and send relevant documents - all without unnecessary formalities. The opening of an account depends on an appropriateness assessment, verified by a test.

3. Make a deposit and start investing

Choose a deposit method convenient for you from a range of available ones, including instant and free payments

WHY XTB

Why invest at XTB?

Innovative Platform

We are constantly working on the development of our proprietary and award-winning investment platform to make sure it suits all your needs. Available in both desktop and mobile versions.

Regulation

We are one of the largest stock exchange-listed bokers in the world, regulated by several reputable supervisory authorities. We are also covered by a compensation fund.

Multilingual and highly qualified Customer Support

Our support team is ready to help you 24 hours a day, from Monday to Friday.

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Education

Explore extensive Knowledge base

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Understanding Contango and Backwardation: Key Concepts in Commodity Futures Markets

FAQ

Do you have any questions?

Investing in oil offers several advantages. Firstly, oil has a proven track record of maintaining its value, even during periods of inflation and recession. Additionally, oil investments provide diversification to your investment portfolio, which can help mitigate risk.

 

Oil CFDs, also known as Contracts for Difference, involve an agreement between an investor and a CFD broker. These contracts require the settlement of any change in the value of oil from the beginning to the end of the contract. One notable characteristic of oil CFDs is their leveraging aspect, which allows investors to take larger market positions than their account funds would typically permit. Moreover, oil CFDs enable investors to profit from both price increases and decreases. Learn more about CFD investing at XTB

 

The value of your oil investment depends on several factors, including the current market price of oil, the specific type of oil you have invested in, and any associated fees or expenses. You can monitor the current price of oil on financial news websites or through an online broker, such as the XTB xStation investing platform. It is important to consider any costs associated with buying or selling your oil investment when calculating its overall value.

 

Trading oil through Contracts for Difference (CFDs) is not limited to the regular operating hours of oil exchanges. Since CFDs are derivatives, they can be traded almost continuously. This is because they are not directly linked to physical assets but instead track the price movements of oil in the underlying market.

At XTB, you have the opportunity to trade oil CFDs 24 hours a day, from Monday to Friday.

 

It is not possible to determine the "best" commodity to invest in, as the performance of different commodities can vary significantly depending on a wide range of factors. Some common commodities that are traded on the financial markets include oil, gold, and agricultural products.

Yes, individuals can invest in commodities through e.g. commodity based instruments - such as CFDs and futures contracts or purchasing physical meterials.

It is not possible to determine a "top" commodity, as it depends on a wide range of factors, but top five commodities by global trade volume are: Oil, Natural Gas, Gold, Silver and Copper. However, the popularity of different commodities can vary depending on regional and global economic conditions.

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