Buy and sell oil online

Over the last few years individual investors have been becoming increasingly interested in the oil market. It can also be noted that the price of this energy commodity generally following an upwards trend despite strong fluctuations according to different periods. So why this strong interest in black gold and how can an individual buy oil and make profits over the short, medium or long term? This is what we will cover here with various details, information and advice.

 

Buying and selling oil online:

The online brokers enable you to buy and sell oil directly through the internet and through the markets, without having to physically store the oil. An excellent method of making profits from the price movements; make money by managing your own buying and selling positions on the price of oil.

The oil price has experienced numerous fluctuations since the beginning of the 70’s leading it progressively to the current level.

To trade oil, you need to know the functioning of spot markets. It was on the spot markets as crude oil traded in the short term

The WTI or West Texas Intermediate is one of the most popular types of oil traded on the financial markets. Learn about its history, characteristics and the information necessary to trade it efficiently and profitably.

 

Find practical information and historical data about changes in oil prices, as well as some prospects for better investing in this long-term asset.

Have free trading signals on oil, and this day is a great way to maximize your earnings without needing extensive knowledge on trading.

To achieve a good technical analysis of crude oil, follow our advice and learn how to correctly interpret its price movements due to the influence of certain elements.

 

Do you want to trade in oil and make profits on predicting the movements in the oil price? Here you can learn how to complete technical and fundamental analyses in order to achieve this.

To assist you in trading effectively on the stock markets we offer you the opportunity to learn about movements in the Total share price, and an analysis that enables the establishment of a forecast for its future movements.

Learn how to follow the news and events concerning oil and interpret the data received to anticipate future movements in the price of oil and thereby trade rapidly.

 

Read the list of the major oil exporting countries as well as information on OPEC, the organisation responsible for regulating their production which influences the market price.

Learn how the American oil stocks can influence the price per barrel of crude oil with these complete explanations on this fundamental data and details on its precise interpretation.

Technip shares are one of the most promising shares at the moment. Learn all you need to know about the recent movements of its price and our predictions for the coming months and years.

 

The drop in the oil price is currently worrying many investors. Learn about the causes and reasons for this price drop and our advice on how to profit from this situation by trading online.

Learn how to invest in shares of the BP petroleum company and make profits rapidly online with this asset; read our explanations and essential information on trading in BP shares.

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Why buy oil online ?

Investing in the oil market offers a certain number of advantages, as much for the long term investors that purchase barrels through banking investment products such as UCITS as, and maybe even more so, for the short term investors that conduct market transactions through the use of CFDs offered by online brokers. 

In fact it can be seen that the movements in oil have followed a rising curve for a while now, mainly due to the increase in the Asian demand as well as the various tensions that have affected the producing countries and that regularly threaten the supplies of the western world. 

Oil has become a highly popular investment product as, according to the experts, the supply cannot indefinitely satisfy the growing demand. Its price can therefore only rise too. Oil also has the advantage of offering a strong volatility that allows traders to make profits rapidly using CFDs through the price increase or decrease micro-movements.

 

How to really purchase oil:

There are several solutions to enable the purchase of oil such as trading in futures or term contracts which is actually the most popular at present. These contracts are offered by online brokers. Their use is however a little complicated for novice traders and also presents a certain risk factor. 

The ideal way for novice traders is to use derivatives, also offered by these brokers, such as CFDs or warrants. 

With these different solutions you can virtually buy or sell barrels of oil on the financial markets without actually having to physically own them. 

As you have no doubt noted, there are various methods for buying oil but the simplest and most profitable is considered to be online speculative investments through derivatives.

 

How to speculate efficiently on the price of oil online: 

You should understand that derived products such as CFDs allow you to speculate on the rise of oil as well as on the fall. You will therefore be able to anticipate any strong movements, whatever direction they take. To do so you need to know the influencing factors relative to the price of black gold. The major influences are as follows: 

  • Its correlation to the dollar: As with all commodities, the price of oil is quoted in American Dollars. Due to this fact, when the value of the dollar rises, the barrel of oil becomes more expensive for foreign investors. We can therefore notice a drop in the price of oil in this case and the contrary, a rise in the price when the dollar is weak.
  • The American stocks: The United States of America is the country that consumes the most oil worldwide, the balance of its supplies or stocks, published weekly, enables the opportunity to make fast profits. When the true stocks are higher than the requirements then we generally see a fall in the price, and vice versa.
  • The conflicts in producer countries: Finally, it is recommended to closely follow the news in the producing countries, often at war, as conflicts can often entail a certain substantial rise in rises due to worries related to a stop or slow down in supplies.

 

How to buy into oil using CFDs:

As the oil market is particularly volatile it can be particularly attractive to individual investors. Considered as a real gauge for evaluating the economic health of the larger countries, the oil price is actually subject to strong variations according to supply and demand as well as other influential factors which are relatively easy to identify and anticipate such as geopolitical conflicts that notably affect oil producing countries in the Middle East and Africa. Due to this fact investment in oil appears less risky than investing in other types of more dangerous fluctuating assets as whatever happens this type of energy is the most used throughout the world.

Another thing, the oil price demonstrates strong inter day variations that can make it beneficial for trading using financial instruments suitable for day trading such as CFDs. You will easily find CFD contracts on the price per barrel of WTI or Brent on the platforms of respectable traders.  

To buy into oil using CFDs you simply need to subscribe to a trading platform that offers this asset and deposit your initial investment capital. You will then be able to take position on buying or selling on the price per barrel of American or European oil. In this way you will be able to benefit from both rising and falling movements in the price to make profits from black gold.

CFDs can be used with stop and limit orders that enable you to better manage your positions over the short term and benefit from advantageous movements while limiting possible losses.

The spreads practised on oil by the majority of brokers are generally between 3 to 6 pips. When making your investments you should also take into account the exchange rate if your account is in Euros. This is because the crude oil price is quoted in U.S. Dollars on the financial markets as are other commodities.

You will also have the opportunity of using a leverage effect to increase the amount of your investment. This should be used with restraint as although it can increase your profits it can also exercise an influence on your losses. However you can use stop orders to limit capital losses when the oil price does not move in the direction you have predicted.

Of course, the CFD trading platforms offer many analytical tools and assistance with making decisions such as charts that can be customised, news feeds and an economic calendar which we suggest you use frequently.

 

How to buy oil at the right time in a strategic manner?

Before starting to buy oil online you should possess a basic knowledge about this market and this particular asset. This information will assist you in knowing when to buy oil:

Firstly, you should know that the oil price is directly linked to geopolitical news and events. You can therefore use this type of news and events to determine the best time to take position on the market. Contrary to other types of assets oil is not solely influenced by technical indicators and the strategic positioning of investors but more by major factors such as politics. More precisely OPEC (or the Organization of the Petroleum Exporting Countries) plays a key role in the movement of the oil prices. The decisions of this organisation generally have a major positive or negative impact on the prices of black gold and this is almost instantaneous.

Of course, you should also take into account supply and demand before starting to buy oil. This means that when production is less than demand we generally observe a rise in the oil share price and conversely, a fall in the oil share price when demand is weak and production is high. To be able to evaluate oil supply you can use the quotas issued by OPEC as well as current events and news on the discovery of new oil fields or the development of oil from shale fracking. Relating to demand, this is directly linked to the economic growth of highly industrialised countries that consume major quantities of this commodity. The level of American oil stocks should also be taken into account. 

In conclusion, to identify the best time to buy into oil using CFDs it is necessary to determine your investment horizon. You should particularly favour data from your technical analysis for your short term investments and geopolitical events for longer term investments. For this you can use reliable technical indicators such as the MACD or moving averages.