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Investing in Crude Oil

Crude Oil is the world’s most heavily traded commodity. The volumes of trade in oil that flow daily through commodities exchanges dwarf those for other commodities. This is because buyers and sellers in the market include not only speculators, funds and investors but also oil producers and refiners who use futures to hedge their exposure -that is, cushion themselves from price swings by fixing prices three, six, twelve months or longer in advance. This has led to an efficient market, resulting in efficient pricing and narrow spreads on Bid/Ask prices.

Oil futures are traded on New York Mercantile Exchange (NYMEX), which is the most liquid market for oil futures; the Intercontinental Exchange (ICE), the key oil exchange in Europe; the Shanghai Futures Exchange (SHFE) and the Tokyo Commodities Exchange (TOCOM).


Not all crude oils are created equal. They vary in quality based on their sulfur content and density. The most desirable crude oils are classified as “light and sweet,” containing a high proportion of fractions used to produce gasoline, kerosene, and diesel. The term “sweet” refers to oil with low sulfur content, which historically was determined by prospectors who would taste and smell the oil. Light and sweet crude oils are sought after due to their versatility and ease of refining into high-demand products

WTI’s nearest rival, Brent Crude oil, a type of oil from the North Sea traded on ICE in London, has risen fast and has become the key contract the industry will look at when trying to assess what the global price should be. You will often see both Brent and WTI quoted as spread bets or CFD markets.

The quality of crude oil varies from field to field, it is classified depending on how much sulphur it contains and how light or heavy it is. Crude oil is not used in its original form but is refined into products such as gasoline and kerosene, a fuel for planes, and distillates such as diesel and heating oil used to either power buses, trains and machinery or to heat building and fire industrial boilers.

CME Group’s West Texas Intermediate (WTI) is a light, sweet crude oil that serves as the benchmark for U.S. oil pricing. WTI futures are the most actively traded crude oil contracts on the NYMEX, with a high degree of liquidity. Until recently, WTI was considered the global benchmark for the oil industry. However, in recent years, WTI prices have diverged from global oil prices due to regional storage and transportation dynamics in the United States. Despite this, WTI remains a crucial reference point for the U.S. oil market and is widely used as an underlying asset for Contract for Differences and spread betting.

The price of crude oil is determined by a delicate balance between supply and demand factors, geopolitical events, and market sentiment. On the supply side, production decisions by major oil-exporting countries, particularly OPEC members, can significantly impact prices.

Disruptions to production, such as conflicts or infrastructure issues, can lead to supply shortages and higher prices. Demand is influenced by global economic growth and energy consumption patterns, with stronger economic expansion typically driving higher oil prices. Geopolitical events, like tensions between oil-producing nations or changes in trade policies, can introduce volatility.

Market sentiment and speculative activity also play a role in short-term price movements. Investors closely monitor data releases, such as weekly U.S. oil inventory reports, and adjust their positions based on expectations and market trends. Navigating the complex web of factors influencing crude oil prices is crucial for investors seeking to make informed decisions in this dynamic market.

Crude oil is readily available to traders online as a Contract for DifferenceFutures contract or Exchange Traded Fund. UK residents can trade the index through a tax-free Spread Betting broker.

There are a number of ways in which investors can gain exposure to Crude Oil. Exchange Traded Funds or ETFs will offer investors access to the Crude Oil price in a variety of ways. Long Crude Oil ETFs will enable investors to profit from a trade when the price is going up, while Short ETFs will help investors to profit from a falling Crude Oil price. Bear in mind that you will lose money should the price of Crude Oil move against you. Leveraged ETFs provide greater exposure to the tracked Crude Oil price by magnifying price movement. This will work in an investors favour when the price is moving in the direction of the ETF, but against it when the price moves against the trade. 

Invest in Crude Oil with these ETF platforms

ProviderDepositFeesISAsInvestment Options
eToro
eToro
no initial depositno platform feeStocks & Shares ISAsUK Shares
Funds
ETFs
Bonds
Robo Advisor
Maximize your £20,000 annual tax-free allowance with the eToro ISA powered by Moneyfarm – voted UK's Best Investment ISA 2024. Choose between fully managed portfolios created by experts or DIY investing where you handpick your own assets, or combine both approaches. Enjoy dedicated expert guidance via chat, phone, email or video call. Fast, free ISA transfers handled entirely for you. Your ISA contributions boost your eToro Club status, unlocking exclusive offers and VIP perks. Your capital is at risk. Moneyfarm is authorised and regulated by the FCA as an Investment Advisor and Investment Management Company – Authorisation no. 629539
 
IG
IG
£500 initial deposit
£50 monthly minimum
£96 platform fee
£8.00* per trade
Stocks & Shares ISAsUK Shares
Non-UK Shares
Funds
ETFs
Robo Advisor
Trade 3+ stocks per month for active trader cost of £3.00 on UK stocks. Clients holding investments will be charged a platform fee of £8 per month which can be offset against a trade over the period. IG's Smart Portfolio's are a low cost option for those who are unsure where to invest their money.
 
Interactive Brokers
Interactive Brokers
£1 initial depositno platform fee
£3 per trade
Stocks & Shares ISAs
Junior ISAs
UK Shares
Non-UK Shares
Funds
ETFs
£3 / €3 per trade for Western European stocks, with no added spreads, account minimums or platform fees. Pricing on US stocks starts at just USD 0.005 per share. There is a minimum monthly activity fee of £3
 
Charles Stanley Direct
Charles Stanley Direct
£500 initial deposit
£50 monthly minimum
0.30% platform fee
£10 per trade
Stocks & Shares ISAs
Junior ISAs
UK Shares
Funds
ETFs
Bonds
Minimum charge of £5, maximum of £50 per month for all individual accounts held with Charles Stanley Direct. £10 transaction fee on shares, £4 for funds. £50 of trading credits available every six months from October 2024.
 
Interactive Investor
Interactive Investor
no initial deposit
£25 monthly minimum
£59.88 platform fee
£3.99 per trade
Stocks & Shares ISAs
Junior ISAs
UK Shares
Non-UK Shares
Funds
ETFs
Bonds
Robo Advisor
£4.99 monthly platform fee for account values up to £50,000. £11.99 per month for account values above £50,000. You can also choose from 10 managed investment portfolios
 
AJ Bell
AJ Bell
£500 initial deposit
£25 monthly minimum
0.25% platform fee
£9.95* per trade
Stocks & Shares ISAs
Junior ISAs
Lifetime ISAs
UK Shares
Non-UK Shares
Funds
ETFs
Bonds
Robo Advisor
Trade 10+ stocks per month for active trader cost of £4.95 (reducing to £3.50 from 1st April 24). Additional charge of up to £3.50 per month on stocks and shares. Up to 0.25% platform fee on Funds in addition to £1.50 transaction cost.
 
Aviva
Aviva
£500 initial deposit
£25 monthly minimum
0.40% platform fee
£7.50 per trade
Stocks & Shares ISAs
Junior ISAs
UK Shares
Funds
ETFs
Robo Advisor
Platform fee for Shares, ETFs and Investment Trusts of no more than £45 per year. Platform fees reduce on investments over £50,000. Choose from a range of ready-made funds based on your preferred risk level or from Aviva's full range of 2,000 funds.
 
Barclays
Barclays
£50 initial deposit
£25 monthly minimum
0.25% platform fee
£6.00 per trade
Stocks & Shares ISAsUK Shares
Non-UK Shares
Funds
ETFs
Bonds
Robo Advisor
0.25% platform fee on investments up to £200,000 and 0.05% on investments above £200,000
 
Bestinvest
Bestinvest
£100 initial deposit
£90 monthly minimum
0.4% platform fee
£7.50 per trade
Stocks & Shares ISAs
Junior ISAs
UK Shares
Funds
ETFs
Robo Advisor
Platform fees reduce to 0.2% for ISA transfers over £250,000. There are no fees for fund transactions. BestInvest provide four ready made portfolios designed for inexperienced investors.
 
Chelsea Financial Services
Chelsea Financial Services
£1 initial deposit
£10 monthly minimum
0.60% platform feeStocks & Shares ISAs
Junior ISAs
Funds
Robo Advisor
Investors can choose from 5 EasyISA portfolio's or build their own portfolio from a range of 2,500+ funds
 
evestor
evestor
£1 initial deposit0.53% platform feeStocks & Shares ISAsFunds
Robo Advisor
Clients can choose from three managed portfolios, low medium or high risk
 
Fidelity International
Fidelity International
£1000 initial deposit
£50 monthly minimum
0.35% platform fee
£10.00 per trade
Stocks & Shares ISAs
Junior ISAs
UK Shares
Non-UK Shares
Funds
ETFs
Bonds
Platform fee of 0.35% or flat £45 fee for holdings below £7,500. Share dealing costs relate to ETFs and Investment Trusts. ISA prize draw for new account holders that deposit a lump sum before 31 March 2020
 
Halifax
Halifax
£2000 initial deposit
£100 monthly minimum
£12.50 platform fee
£12.50 per trade
Stocks & Shares ISAsUK Shares
Non-UK Shares
Funds
ETFs
Bonds
Robo Advisor
£12.50 platform fee for holding an ISA account. Choose from 2,000+ funds or three ready-made portfolio's with a £2,000 lump sum or £100 monthly payment
 
Hargreaves Lansdown
Hargreaves Lansdown
£100 initial deposit
£25 monthly minimum
0.45% platform fee
£11.95* per trade
Stocks & Shares ISAs
Junior ISAs
Lifetime ISAs
UK Shares
Non-UK Shares
Funds
ETFs
Bonds
Robo Advisor
SIPP
Trade 10+ stocks per month for active trader cost of £8.95 or 20+ at £5.95. Additional charge of up to £45 per annum on stocks and shares. There's no dealing charge for buying or selling funds but you'll pay a holding fee of up to 0.45% per annum. Ready-made portfolios are available for investors that are unsure where to invest their money for an additional fee.
 
Legal & General
Legal & General
£100 initial deposit
£20 monthly minimum
0.61% platform feeStocks & Shares ISAs
Junior ISAs
Funds
Robo Advisor
Choose from five ready-made funds or create your own portfolio by picking from 40 investment funds
 
Moneyfarm
Moneyfarm
£1 initial deposit0.75% platform feeStocks & Shares ISAsFunds
Robo Advisor
Answer a series of questions and Moneyfarm will match your appetite for risk with one of their seven investment portfolios
 
Nationwide
Nationwide
£20 initial deposit0.56% platform feeStocks & Shares ISAs
Junior ISAs
Funds
Choose from four funds managed by Aegon
 
OneFamily
OneFamily
£500 initial deposit
£50 monthly minimum
1.50% platform feeStocks & Shares ISAs
Junior ISAs
Lifetime ISAs
Funds
One fund available in a Stocks and Shares ISA: The Ethical Equity Stocks and Shares ISA is invested in the Family Charities Ethical Trust, which invests mainly in FTSE4Good UK 50 companies
 
Saxo Markets
Saxo Markets
£1 initial deposit
£1 monthly minimum
no platform fee
£3.00 per trade
Stocks & Shares ISAsUK Shares
Non-UK Shares
Funds
ETFs
Bonds
Trade from £3 on UK stocks, $1 on US Stocks with no platform fee. Currency conversion fee of 0.25%.
 
Scottish Friendly
Scottish Friendly
£100 initial deposit
£10 monthly minimum
1.50% platform feeStocks & Shares ISAs
Junior ISAs
Funds
Robo Advisor
Choose from 3 Investment ISA products; My Easy Choice, My Choice and My Prime. Investors can assign parts of their investment to separate accounts for specific purposes
 
Vanguard
Vanguard
£500 initial deposit
£100 monthly minimum
0.15% platform feeStocks & Shares ISAs
Junior ISAs
Funds
ETFs
Robo Advisor
Our cheapest featured platform with fees capped at £375 per year. However, a limited choice choice of 75 funds available
 
Virgin Money
Virgin Money
£1 initial deposit1% platform feeStocks & Shares ISAsFunds
Bonds
Robo Advisor
Clients can choose between 5 investment funds. A sixth Climate Change Fund is available at the higher 1.3% annual fee with minimum deposit of £500
 
Wealthify
Wealthify
£1 initial deposit
£1 monthly minimum
0.60% platform feeStocks & Shares ISAs
Junior ISAs
Funds
Robo Advisor
No minimum deposit or monthly contribution. Investors have access to 10 funds which includes 5 ethical funds designed to suit your preferred level of risk.
 
Willis Owen
Willis Owen
£25 initial deposit
£25 monthly minimum
0.40% platform fee
£7.50 per trade
Stocks & Shares ISAs
Junior ISAs
UK Shares
Funds
ETFs
Robo Advisor
Trade Shares, ETFs and Investment Trusts for £7.50. Choose from 2,500+ Funds or ready-made portfolios based on 3 levels of risk
The Fee Per Trade applies to stocks and shares and is the maximum fee charged for a one-off trade. Many ISAs charge less if you are a regular, active trader.

Would you like your ISA listed here? Contact us

For short term exposure to the Crude Oil price, traders can use Contracts for Difference or CFDs to track the index. CFDs provide an opportunity for traders to make trades on a rising or falling prices. UK investors may prefer to trade with a spread betting provider where any gains are tax free.

Trade Crude Oil with these CFD brokers

BrokerMinimum DepositMarketsProducts
Pepperstone
Pepperstone
£0Commodities
Currencies
Indices
Stocks & Shares
CFDs
FX
Spread Betting

With a strong focus on the trading experience, industry leading technology, low costs and award-winning client support, we feel that Pepperstone is a good option for the more established high volume day trader.

 
FP Markets
FP Markets
$100Commodities
Currencies
Indices
Stocks & Shares
CFDs
FX

FP Markets is an established ASIC, CySEC FSP and CMA regulated broker. They offer access to the industry leading MetaTrader platforms and provide pricing directly from the market meaning fast execution and transparent pricing. A 24/7 multilingual client support service has won recognition through the highly respected Investment Trends awards.

 
Capital.com
Capital.com
£20Commodities
Currencies
Indices
Stocks & Shares
CFDs
FX
Spread Betting

Capital.com’s intuitive, user-friendly platform, round-the-clock support and seamless integration with MT4 and TradingView make it a worthy contender for beginner and experienced traders alike. The broker boasts an ‘Excellent’ Trustpilot rating.

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Would you like your brokerage listed here? Contact us

Futures are derivative contracts that set a specific price for the sale of an asset at a specific time in the future. A futures contract is a legal agreement between two parties to buy or sell an asset at a predetermined price on a future date. It’s a binding commitment traded on exchanges like CME Group.

Trade the FTSE 100 Index with these Futures Brokers

BrokerMinimum DepositMarketsProducts
Interactive Brokers
Interactive Brokers
$0Bonds
Commodities
Currencies
Indices
Stocks & Shares
CFDs
ETFs
FX
Futures
ISA
Stocks & Shares

Interactive Brokers is one of the world’s leading futures brokers with the ability to offer direct market access to a range of securities. With previous personal experience of trading with this broker, The Armchair Trader knows that they offer excellent platform stability, an excellent range of markets, and solid customer support

 
Tickmill
Tickmill
£100Bonds
Commodities
Currencies
Indices
Stocks & Shares
CFDs
Futures

Tickmill is an established, regulated broker. With a focus on platform technology, fast reliable trading and low costs, it is a good choice for the experienced high volume trader.

Would you like your brokerage listed here? Contact us

Crude Oil ETFs

WisdomTreeWTI Crude OilCrude Oil
LON:CRUD / USD
Buy at Hargreaves Lansdown Buy at IG Buy at Charles Stanley
WisdomTreeWTI Crude Oil 3x Daily LeveragedCrude Oil
LON:3OIL / USD
Buy at IG
WisdomTreeWTI Crude Oil 3x Daily ShortCrude Oil
LON:3OIS / USD
Buy at IG

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