Oil Trading Guide: WTI, Brent and Key Price Drivers

Oil trading guide: the difference between WTI and Brent, the weekly and monthly data that moves crude, how OPEC+ and the dollar fit in, why the forward curve matters for a held position, and how oil CFDs work at MarketsAll.

Crude oil is the most traded commodity in the world and the most macro-sensitive: it responds to a cartel's production decisions, a weekly inventory number, a shipping lane, a hurricane, and the US dollar, sometimes all in the same week. It is also priced off futures, which means a position held for months pays a cost that has nothing to do with the direction of the price.

Key Takeaways

• WTI is the US benchmark, delivered inland at Cushing; Brent is the seaborne international benchmark. Brent usually trades at a premium.
• Supply is the defining driver: OPEC+ quotas, US shale output, disruptions. Supply is slow to adjust; demand is not.
• The weekly EIA inventory report on Wednesdays is the most watched scheduled release in the market.
• Oil prices come from futures contracts that expire. A held position rolls, and in contango the roll costs.

WTI and Brent

Brent's premium over WTI widens when US supply is trapped inland and narrows when exports flow freely. The two move together on most days and diverge on the days that are about US logistics.

What Moves Oil

Supply. OPEC+ production quotas, US shale output, disruptions — strikes, outages, conflict, sanctions. Bringing new supply online takes years, which is why demand shocks produce spikes rather than adjustments.

Demand. Global growth; seasonality — summer driving, winter heating; recession fears. Demand can fall in a quarter; supply cannot respond in one.

Inventories. The clearest real-time measure of supply against demand. The US Energy Information Administration publishes crude stocks every Wednesday; the American Petroleum Institute's estimate lands the evening before. A surprise draw or build moves the price within seconds of release.

The dollar. Oil is priced in dollars. A stronger dollar makes it dearer outside the US and tends to weigh on the price. See how the US dollar affects commodities.

Geopolitics. Producing regions and shipping chokepoints. Frequently unscheduled.

The Weekly Rhythm

Times shift with US daylight saving; EIA data is delayed a day after US holidays.

The Forward Curve

Oil prices are futures prices. Contracts expire monthly; the set of prices across months is the forward curve. In contango later months cost more; in backwardation they cost less. A CFD position held across expiries is rolled into the next contract, and in contango each roll buys higher — a cost that accrues while the spot price is flat. How MarketsAll handles the roll for WTI and BRENT is in the contract specification. See what is commodity trading.

How Oil CFDs Work

For illustration, a contract size of 1,000 barrels per lot at $78 is $78,000 of exposure; a $1 move is $1,000 per lot. Account leverage runs up to 1:200; the figure applied to oil is in the specification and is typically lower than for currency pairs, reflecting oil's volatility.

Trading Hours and Volatility

Oil CFDs trade close to 23 hours on weekdays with a short daily break, closing for the weekend. Typical daily moves are 1.5–3%, considerably more around inventory data and OPEC+ meetings, and far more in a supply shock. See global market trading hours and volatility and liquidity.

Worked Example: An Inventory Surprise

Long 0.10 lot WTI at $78.00 (illustrative 100 barrels, $7,800 exposure). Wednesday's EIA report shows a build of 4 million barrels against an expected draw.

One number, one afternoon, 2.5% — a Wednesday that was on the calendar. See gap risk and position sizing.

(Illustrative. Excludes spread and financing.)

Key Risks

• Volatility with leverage. A 3% day at illustrative 1:10 leverage is 30% against the margin.
• Roll cost on held positions in contango.
• Supply shocks that dislocate prices faster than orders can be filled.
• Correlation. Long oil, short USDCAD and long an energy share are one view. See correlated positions.
• Weekend gaps on geopolitical and OPEC+ news.

How to Trade Oil at MarketsAll

WTI and BRENT are available on MetaTrader 5 and Web Trader across all account types, alongside NGAS. Before a first position: read the contract specification, note Wednesday's release time in your timezone, establish how rolls are applied, and size for an inventory-day move.

What is the difference between WTI and Brent?

WTI is the US inland benchmark; Brent is the seaborne international one. Brent usually trades at a premium, which widens when US supply is trapped inland.

When is the EIA report?

Wednesdays at about 14:30 UTC, shifting with US daylight saving and delayed after US holidays.

Why does oil fall when the dollar rises?

Oil is priced in dollars; a stronger dollar raises its price in other currencies, which weighs on demand and on the dollar price.

Can I hold an oil CFD for months?

Yes, but daily financing and, in contango, roll cost both accrue regardless of direction.

What is the most important oil event?

The weekly EIA report for scheduled volatility; OPEC+ meetings and geopolitical developments for the largest moves.

Related Guides

What is commodity trading · What is OPEC · How the US dollar affects commodities · Contract specifications on MT5 · Global market trading hours · Gap risk