Crude Oil (WTI)
— Analysis & Guide.
West Texas Intermediate (WTI) is a grade of crude oil used as a benchmark in oil pricing. It is a light, sweet crude oil.
Key Trading Facts
Trading Hours
23 hours a day
Typical Spread
2.0 - 4.0 cents
Contract Size
1,000 barrels
UK Leverage
1:10 (UK Retail)
What is Crude Oil (WTI)?
Crude Oil (WTI) (WTI) is a critical instrument in the commodity market. Whether you're a day trader or a long-term investor, understanding the price action of this asset is essential for navigating the global financial landscape.
At its core, Crude Oil (WTI) reflects the collective sentiment of market participants toward the underlying economic factors of the respective companies or commodities.
What drives Crude Oil (WTI)?
OPEC+ Supply Decisions
This is a major fundamental catalyst for Crude Oil (WTI) price action, causing significant volatility when data deviates from market expectations.
US Inventory Data (EIA)
This is a major fundamental catalyst for Crude Oil (WTI) price action, causing significant volatility when data deviates from market expectations.
Global Economic Growth
This is a major fundamental catalyst for Crude Oil (WTI) price action, causing significant volatility when data deviates from market expectations.
US Dollar Strength
This is a major fundamental catalyst for Crude Oil (WTI) price action, causing significant volatility when data deviates from market expectations.
Expert Trading Tips for Crude Oil (WTI)
- Every Wednesday at 15:30 GMT, the EIA Inventory report causes massive volatility.
- Highly sensitive to geopolitical events in the Middle East.
- Correlates strongly with the Canadian Dollar (CAD).
Common Mistakes to Avoid
Over-Leveraging during Volatility
Many beginners in Crude Oil (WTI) trading make the mistake of using maximum leverage when volume is highest, leading to rapid account depletion during minor pullbacks.
Ignoring the Economic Calendar
Trading Crude Oil (WTI) right before a major news release without a protective strategy is gambling, not trading. Always be aware of scheduled catalysts.