Trading oil: WTI vs Brent explained
The difference between WTI and Brent crude, what moves oil prices, and how to trade oil as a CFD on MetaTrader 5.
Bilal Hatab6 min read
Crude oil is one of the most closely watched markets in the world. Two benchmarks set its price: WTI and Brent. With BBCorp you can trade both as CFDs on MetaTrader 5.
What is WTI?
West Texas Intermediate (WTI) is US crude oil. It is the benchmark for oil produced in the United States and is traded on the NYMEX exchange.
What is Brent?
Brent is crude oil from the North Sea, traded on the ICE exchange. It is the benchmark for much of the world’s oil, including a large share of oil from the Middle East and Africa.
Why their prices differ
WTI and Brent usually move together, but not at the same price. The gap between them, called the spread, changes with transport costs, supply in each region and demand from different buyers. Both are priced in US dollars per barrel.
What moves oil prices
- Supply decisions by OPEC and other large producers.
- Weekly US inventory figures, which show whether stocks are rising or falling.
- Global growth and demand for fuel.
- Conflict and political risk in producing regions.
- The US dollar: a stronger dollar can weigh on oil prices.
How to trade oil with BBCorp
Oil CFDs are settled in cash: you trade the price, and no oil is delivered. BBCorp offers WTI and Brent crude oil CFDs, plus WTI, Brent and natural gas futures. Live prices are on Energies.
- Open an account in the client portal and complete your identity check (KYC).
- Fund it with one of the payment methods offered in your country.
- Download MetaTrader 5, log in with the details from the portal and place your first trade.