Oil Futures Explained - WTI and Brent Oil Futures Trading
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- เผยแพร่เมื่อ 1 ก.ค. 2024
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Crude oil has always been one of the most important commodities. And with the current situation in the world surrounding the oil prices, it’s important to have these oil prices explained in a way that everyone can understand. Specifically, in this video we would like to discuss what oil futures contracts are and how they work.
In this video we will also touch on terms such as oil futures rollover, which is especially important in the trading of crude oil futures. And we will also focus on Brent oil futures in particular, as the Brent price on oil is considered the benchmark for global oil purchases. Similarly, the WTI price is also a very important index to monitor.
We hope we managed to have oil futures explained in a comprehensive way, but if you have any questions - drop us a line in the comments.
If you liked our ‘Crude Oil Futures Explained’ video, please don’t forget to give it a thumbs up! And for more information on crude oil futures trading, be sure to subscribe to the Capital.com channel!
#OilFutures
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Very informative video. Great place to get information to do your own due diligence. Thank you for the hard work to get this together subscribed and wishing you the best.
Glad it was helpful!
Around 1% of WTI futures actually gets delivered. Brent is different as there are different types of settlement and storage on the ICE contracts.
There's also no point in trading the futures if you're just trading the flat price. Just trade the CFD if that's what you're after.
The real benefit of futures is the curve. Which you can utilise for different strategies and trading months etc. Flies, condors etc etc.
The curve isn't ways trading at a premium (contango) and in some instances or deflationary situations we may see a discounted curve (backwardation)
Brent is so the global benchmark, hence the premium. But there is always the Arb to factor in with Brent and WTI. So the prem/disc will fluctuate around.
Final thing. It's the way the oil is sourced that is different and determines a lot of the price for storage and shipping etc. Brent is typically a North Sea oil. Where as WTI is a shale oil and is produced or fracked in land.
I'm ex BP and ex CME / ICE market maker for crude products.
Nice vid.
Very complete video! Awesome!
Excellent video, thank you
Nice one David
Very Good Video ❤
From
India
Hi, What funding and interest charges do you apply to Brent spot & futures if I want to keep the position open for more than one day
For cash position (buy long or sell short) , is there a deadline to square off that particular position for brent and wti? For example if I take buy brent at 16/bbl, by when I need to square off that position. For futures I believe there are also different square off date for brent and wti isn’t it? Thanks
How do you see the july contract? Do you think it Could go lower? Im interested because i Weber short on it. Great video.
Hello. I have a question. I was wondering what commission expanses I deal with if I buy one contract now and for example I sell it in december 2020? Thanks a lot
Hello David .. Could you please make a Video ( every once and a while ) on what are the most active and volatile stocks these days that should be watched in order to pick good trades .. Thanks
I believe USO held most of the contracts that turned negative while UCO did not hold as many.
Are spot trading not always better than futures trading for longer term horizon so your not exposed to the contango effect?
So you can’t trade the spot/cash price because you need to take delivery right away?
Hey David the easy trade UCO for the long & sco for the short but volume big movement. On /cl the key is the 8dma at 18.44 needs to close above to go higher excellent 2 wa y trade
between heavy crude oil and liquid crude oil, which one is better? Also, what's the difference between call and put option?
Bender Bending Rodriguez, put you are banking that it goes down, with a call you are banking that it goes up
@@joschmo7983 so effectively, a seller would most likely be the holder of a put option and a buyer would hold a call?
What trading platform are these guys using?
Hi,
I have a few questions for you if you don’t mind answering.
1. Which oil contracts are based on the cash price?
2. Could you provide me with some clarity regarding ETF’s and Futures and are they both types of CFD’s?
In the next video regarding oil can you go into more depth about rollover and how it is calculated please
Im new to this. Im thinking it will be a no brainer that it will be good to invest in oil but I dont know how to start
Do u know what we really need. We should establish every rd for future selling, then gov can place money into improving rds every time they sell a rd and sharemarket conglomerates/superannuations the sale and everyone has a tag on cars. Just a thought but imagine the infight to see who gets improved rds and who improves their rds under private income from them..? Save gov heaps at least
Salaam plzzz tell me what is the process to open an account i m from Pakistan
IMHO oil/gas combined energy usage has had its peak.
This crisis has brought forward the move away from fossil energy
Volatility and risk will increase.
A spread of energy sourcing will increase to lower the risks.
An example is even what the UAE are doing invested greatly in nuclear energy and has a bit of capacity in solar.
And? What to play?
I've been practicing on this platform for months and supporting the channel as best I can and today for the first time I find out that my region is not supported. WELL I'M PISSED. THAT IS NOT FARE AND I SHOULD HAVE BEEN LET KNOW OF THIS AGES AGO
i recently learned that if you buy a Crude Oil Futures contract & you do not close your position before it expires then the barrels will actually be delivered to you, is that correct ??
If you are buying in the underlying futures markets then delivery is a risk which is why most traders will roll into the next month before contract. With us, all our contracts are "cash settled" so you do not have the risk of barrels of oil turning up on your doorstep.
Can I short crude oil on spot without using futures or margin? Thx
yes, but you will be charged a nightly fee as they are spot price only, not future spreadbet/CFD products.
Brent is not a higher grade of oil as it has a higher sulphur content. WTI is a higher grade of oil.
Oil has only futures contracts for buying ? I just want to buy and sell whenever I want; is this possible ?
can if you’re buying, by definition someone else is selling...
Omg I misheard Davy Jones! Should adopt that as alias!
Next couple weeks and after that we can have long positions on oil
Kanka oil sadece futures olarak mi satin alinabiliyor? Alip istedigim zaman da satmak istiyorum diyelim 1 sene sonra fakat tarih kesinlestirmek istemiyom. Bitcoin gibi yani. Mümkün müdür
?
I wonder how many people lost a large amount of money recently trading in oil/gas. And the near futures not looking good. Heard that effectively only 1% of oil storage is still available on the open market.
📈📈📈📈👍
wts your view in up coming week?
I believe the price is starting to recover and increase, it probably won't go lower than it was a few days ago. Many businesses are reopening as some restriction are lifted. What do you think will happen?
@@ivandimitrov3094 am expecting there will be strong selling pressure.Demand Concern,Over production continuous.
#borrowing #bitcoin @ $20k #buying #tsla #yah #tesla up to @ $666 #shorting #oilfutures #yay #march4thoilfutures #saveyourpennies #saudiroyals
Total scam put 2500eur on my account and now they can't find out where it is anymore.....?!!
Do you get answer for your problem?
Anyone buying owning "Silver Paper Stocks" is a Fool. Own the actual Sterling Raw HARD Metal or Antique
Old collectible item of Solid or Plated Sterling only goes up in value ...and more important..DEMAND from Buyer's with lot's of Cash or Valuable TRADE !
why can't you just do an example trade instead of droning on about things that have nothing to do with actually making a trade.