How to invest in oil etf
- how to invest in brent crude oil
- how to buy brent crude oil stock
- what is brent crude oil used for
- what is brent crude oil
Crude oil trading strategy pdf.
How to invest in oil futures
Introduction
Crude oil is considered as the most precious commodity on earth, primarily because of the important role it plays in global manufacturing activities. Oil investors should familiarize themselves with the two different variants available for investments: West Texas Intermediate (WTI) and Brent Crude.
Typically, Brent oil trades at a premium to WTI crude oil. The below is an illustration of the characteristics of these two products.
Source: Capital.com
Many investors, both experienced and novice, continuously search for the available methods to invest in oil.
This article aims to serve as a complete guide that discusses all the popular ways to invest in this asset class.
Oil futures contracts
An investor can use futures contracts to gain exposure to oil, but a thorough understanding of how these financial instruments function is required before deciding to invest in oil through futures.
A futures contract is a standardized legal agreement to buy or sell something at a predetermined price at a specified time in the future, between parties not known to each other.