Crude Oil also known as petroleum is a liquid found in the Earth and is made of hydrocarbons, organic compounds, and tiny amounts of metal. There are many types of crude produced around the world and the quality characteristics are reflected in the value. The most important characteristics are sulfur content, which can be defined as sweet or sour, and density ranges from heavy to light.
The higher priced crudes are usually light (lower density) and sweet (low sulfur amounts). It is less expensive to produce energy products, such as gasoline and diesel, using a light sweet crude oil. These grades are wanted more since they can be processed with refineries requiring less energy.
What is Brent Crude Oil?
Brent is the major benchmark price for oil purchases around the world, and is used to price 2/3 of the world’s internationally traded oil. It is considered a sweet light crude oil meaning low density and low Sulphur content.
WTI and Brent Crude Oil Trading
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Crude Oil CFD & Energys
One of the main advantages of trading commodity CFDs (contracts for difference) with AvaTrade is the flexibility and freedom they offer the trader. With CFDs you can trade crude oil and other energy products at live market rates without any of the fees or complications associated with trading directly in the oil futures market.
You can both buy and sell short without any restriction and without paying a fee, so you can put your analysis into action whichever direction you think the market is headed.
- WTI (West Texas Intermediate):
is the oil taken from wells in the U.S and sent to Oklahoma by pipeline, it is however, expensive to ship around the globe. WTI is the benchmark for all oil in the United States. Traded on the NYMEX exchange.
- Brent Crude:
This oil comes from fields in the North Sea and includes: Brent and Forties blends, and Oseberg and Ekofisk crudes. Easy to transport to far locations, this light and sweet oil is ideal for refining diesel and gasoline. Traded on the ICE EUROPE exchange.
For new and established investors looking to trade oil, AvaTrade offers many additional benefits including an excellent welcome bonus. AvaTrade provides educational tools to help you succeed, around the clock customer service, and daily market analysis and trading charts are sent to you regularly.
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