Oil and Commodities Trading
Diversify your portfolio and trade oil and other markets including energy, grain and soft commodities.
- Low fixed spreads on UK and US oil
- Margins from 1%
- Spot and future markets
Key reasons to trade commodities
Gain exposure to leading markets
Expand your opportunities
Broaden your investments
Interesting facts
| Spreads from | US oil market open | Leverage up to |
|---|---|---|
| 0.05 pts | 23 hrs | 200:1 |
Price drivers
Oil prices are significantly influenced by the balance of supply and demand since it is so heavily consumed on a daily basis. Terms frequently mentioned when referencing this supply vs. demand relationship in oil are “production”, “supply”, “demand” and “oil inventories”. This basically boils down to two major consortiums: the Organization of Petroleum Exporting Countries (OPEC) and Organization of Economic Cooperation and Development (OECD) – OPEC is the group responsible for producing around 40% of the world’s oil, while OECD is accountable for just over 50% of the world’s demand for oil. If production levels exceed consumption demand, then inventories are said to “build” whereby the excess supply can be stored and vice versa. Traders often look to gauge the level of consumer demand by looking at the relative strength or weakness in global economies via monitoring GDP, retail sales, consumer spending, etc. and then seeing how this stacks up to projected inventories. Sentiment in the financial markets also tends to play a major role in the price of oil.
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