Oil CFDs (WTI Crude and Brent Crude) offer one of the most volatile and opportunity-rich markets for CFD traders. This guide covers the fundamentals of oil CFD trading, market drivers, and broker selection.
WTI Crude vs Brent Crude: What's the Difference?
There are two primary oil benchmarks available as CFDs:
WTI Crude (West Texas Intermediate)
- US domestic oil benchmark
- Lighter and sweeter crude
- Priced in USD, quoted as USOil or USOIL on most platforms
- More responsive to US storage and supply data (EIA reports)
Brent Crude
- International oil benchmark (North Sea)
- Used to price roughly two-thirds of the world's traded crude
- Quoted as UKOil or UKOIL on most platforms
- More influenced by global supply/OPEC+ decisions
Most CFD brokers offer both. Brent is typically slightly more expensive per barrel than WTI.
EIA Crude Oil Inventory reports (released every Wednesday) are major market movers for oil CFD traders.
What Moves Oil Prices?
Key drivers of oil price movement:
- OPEC+ production decisions — Output cuts or increases directly impact supply
- US EIA Weekly Inventory Reports — Supply/demand data released each Wednesday
- Geopolitical events — Middle East tensions, sanctions, and conflicts
- Global economic growth expectations — Oil demand rises with economic expansion
- USD strength — Oil is priced in USD; a stronger dollar can suppress oil prices
- Seasonal demand — Demand spikes in winter (heating oil) and summer (driving season)
Oil CFD Costs: Spreads and Swaps
Oil CFD trading involves:
- Spread — WTI and Brent spreads typically range from $0.02 to $0.05 per barrel on ECN accounts; up to $0.30+ on standard accounts
- Overnight swap — Oil positions held overnight incur a daily roll cost, which can add up on longer-term trades
- Leverage — EU/UK retail clients are limited to 1:10 for oil CFDs. Outside these jurisdictions, up to 1:100 is available from some brokers
For frequent oil CFD traders, ECN account types at brokers like IC Markets or TMGM offer the most competitive pricing.
