Oil is one of the most actively traded Contract for Difference (CFD) products in the forex market, offering investors the opportunity to profit from price movements by taking buy or sell positions.
These structured products are based on oil futures contracts traded in international markets and provide investors with the advantage of high leverage.
Investors can choose between two types of oil: U.S. Crude Oil (WTI) and Brent Crude Oil.
In the forex market, the symbols for these products are:
- USOIL or CRUDE OIL for U.S. Crude Oil
- UKOIL or WTI for Brent Crude Oil
Since oil is a futures-based commodity (unlike gold, which trades as a spot product), each contract has a start and expiry date.
Open positions are automatically closed at expiry.
Unlike gold, oil does not have a dedicated spot market or a centralized oil exchange.
Recently, due to declines in oil prices, both Brent Crude and U.S. Crude Oil CFDs have become among the most traded and preferred instruments in global markets.
Sharp movements in oil prices directly affect macroeconomic indicators such as economic growth, current account balance, and industrial production worldwide.
Example of a Forex Oil Transaction
Let’s consider an example with U.S. Crude Oil (USOIL):
An investor wants to open a 1-lot position with 1:10 leverage when the oil price is 47 USD.
The total position size is 1,000 barrels, i.e. 1,000 × 47 = 47,000 USD.
With 1:10 leverage, the required margin is 4,700 USD.
If the investor buys at 47 USD and closes the position at 50 USD, the profit will be:
(50 − 47) × 1,000 = 3,000 USD.
Forex Oil Trading Hours
| Product | Average Spread | (Swap) Buy Sell | Minimum Lot | Trading Hours | Break Period | |
|---|---|---|---|---|---|---|
| USOIL (Crude Oil) | 0.070 | None | None | 0.1 (100 Barrels) | Monday Open 01:00 Friday Close 23:55 | 00:00 - 01:00 |
| UKOIL (Brent Oil) | 0.070 | None | None | 0.1 (100 Barrels) | Monday Open 03:00 Friday Close 23:55 | 00:00 - 03:00 |
Oil Market Analysis
QNB Invest shares daily market outlooks and analyses on oil prices via its website.
You can trade Crude Oil and Brent Oil CFDs 24 hours a day, 5 days a week through QNB Invest.
Forex Oil Prices
You can track live oil prices through the “Live Data” section on our homepage and follow real-time movements of oil markets.
Since oil is priced in U.S. Dollars globally, a stronger dollar tends to lower oil prices, while a weaker dollar often leads to higher oil prices.
How to Trade Crude Oil and Brent Oil Contracts?
On the QNB Invest MetaTrader platform, Brent Oil appears as “UKOIL” and Crude Oil as “USOIL.”
A leverage ratio of 1:10 is applied to both.
The price increment for oil contracts is 0.01, and the minimum trade size is 10 barrels.
Oil contracts are futures-based, with 12 expiry months each year, and trades can be opened in the nearest month’s contract.
All expiry dates for the year are published on our website in advance.
As expiry dates approach, we notify our investors via email and SMS, ensuring they can manage risks effectively.
