Where are oil futures traded?
Oil futures are traded on exchanges, just like shares. But unlike shares, they are traded in the form of oil benchmarks. This is because oil doesn’t come out of the ground in the same form worldwide, and oil benchmarks enable traders to identify the quality and drilling location of the oil they are buying and selling.
The two most popular oil benchmarks are Brent Crude and West Texas Intermediate (WTI), traded on the Intercontinental Exchange (ICE) and New York Mercantile Exchange (NYMEX). You can trade both of these benchmarks with IG, alongside various other oil and gas benchmarks: including Heating Oil, Natural Gas, and No Lead Gasoline in the same way as crude oil trading.
FACTS ABOUT CRUDE OIL TRADING
Trading crude oil is referred to as one of the leading oil trading commodities worldwide. ”Black gold” and “mother of all commodities” are two phrases that are referred to a raw material extracted from Middle Eastern countries. It is widely used for everything from cars to cosmetics, petroleum, plastics, and pharmaceuticals, to fabrics.
CRUDE OIL TRADE, ONE OF THE MOST EXCLUSIVE TRADING COMMODITIES
Trading crude oil is considered an extremely valuable trading product in the commodities markets. It is mainly refined in items used every day, such as pharmaceuticals, gasoline, and diesel. Therefore, it is considered one of the most leading energy sources with its demand constantly increases day by day.
What are oil spot prices?