The oil market is one of the fastest moving markets, and oil trading is linked to the rate of supply and demand. Work in oil trading is not related to quantities because of its global strategic importance and a great influence on the global economy and energy.

Investing in oil trading
Oil is a natural energy resource and is extracted from the ground. You can invest in oil by buying shares in oil companies or exchange-traded funds.

Two types of oil are used as a benchmark for oil pricing in the global economy:

WTI crude oil
It is a crude oil extracted and produced in Texas, USA, and is known as “light oil”, because it is less dense compared to any other crude oil produced by most OPEC countries, and it is described as sweet due to the low percentage of sulfur compounds in its composition.

Brent Crude Oil.

Brent crude oil is extracted from the North Sea region, and Brent crude is light and sweet like West Texas Intermediate crude, and the price of the two types of oil are related to each other and affect the oil market prices.
West Texas Intermediate crude oil is more expensive than Brent, and with the advancement of technology used in drilling and hydraulic fracturing, WTI is approaching Brent, and in the event that the price of one of them rises and the price of the other falls, price levels will disturb.

Factors affecting oil trading
The oil market is affected by political crises and wars, especially in the countries that export it and depend on it in their national economy, and among these factors:

Renewable energy and the discovery of alternative energy sources threaten to circulate oil by reducing its use and lowering its prices due to the trends of studying dependence on it.
The extraction and refining of oil is a very costly activity, especially the extraction of oil reserves from deep underground.
Consumption and demand, especially from developed oil-consuming countries to operate their industrial and economic projects, such as the United States, Japan, China, Germany and the United Kingdom.
Economic and political conditions: Access to oil and its extension is affected by economic and political factors, for example rates of inflation, poverty and unemployment, which cause a decrease in the rate of oil consumption and an increase in the cost of obtaining it. Political unrest and insurrections reduce oil imports and expose imported oil to hijacking or piracy.
Natural disasters and accidents: The natural disasters, such as earthquakes, storms, the state of the climate and other seasonal factors, cause damage to oil drilling sites and the sites of refineries, and affect the rates of oil production and thus its prices.
The oil-producing countries and the OPEC could intervene and affect the price of oil by raising or reducing production in the producing countries.
Oil trading is affected by the US dollar: the relationship between them is inversely related, the lower the dollar against the currencies, the higher the price of oil, as oil is priced in the US dollar.
Benefits of trading oil

Mechanisms of action in oil trading
Trading oil on a futures contract system:
Oil futures contracts are contracts that agree to exchange specific quantities of oil at a specific price on a specific date. They are the most common way of buying and selling oil, because they do not require trading in large quantities.

Trading oil through futures contracts is a popular form of trading, and it is spread among central banks, investment banks, financial institutions, brokerage firms, individual investors, and traders.

Oil importers and exporters use futures contracts because they are guaranteed to face fluctuations and changes affecting oil prices, because the price of oil futures contracts will move with the rise or fall in the value of oil.

Oil Options Contracts
Oil trading through oil options contracts does not differ from the futures system, except in the eligibility to purchase a specific amount of oil before the specified date through a specific price. Options contracts also provide a way to trade on oil price movements without the need to deliver the commodity itself.

Trade oil via CFDs
Trading crude oil via CFDs allows you to benefit from changes in oil prices, but without the need to deal with physical contracts or investing in physical assets.

You can start trading by registering for an account with a broker, downloading and installing a trading platform, depositing funds into your account, and opening and closing deals from the trading platform.

Trading oil via CFDs gives you the potential to profit in rising and falling markets through the ability to trade long (buy) or short trade (sell), and the ability to make short-term trades, while executing trades in a short time.

Benefits of trading oil
Some of the advantages and benefits of oil trading include:

Fluctuations in prices
The volatility in the price movements of oil trading benefits the profits from the swinging up and down movements in daily trading.

Diversify investment
In the event that all investments are placed in one basket, they are threatened by danger in the event of a market collapse, as some investors tie their wealth to property in some countries, while in other countries, assets such as stocks represent a large proportion of personal wealth, and therefore investment must be diversified to reduce losses, which is what it provides. Crude Oil.

Trade the basics
Crude oil is affected by fundamental events, and thus profitable trading opportunities can be realized and taking advantage of the rising stocks.

Noor Capital indicates that using energy and oil derivatives to profit from changes in the base price, and they can multiply those profits using leverage, the spread of oil trading on the stock exchange has increased as a result of the advantages it has compared to those traded outside the stock exchange.