WTI Crude Oil Trading (WTISPOT)

WTI Crude Oil prices are influenced by factors such as global supply and demand, geopolitical events, OPEC policies, and market speculation. For instance, the price of WTI Crude Oil dropped significantly during the 2008 financial crisis. In July 2008, WTI was trading at over $140 per barrel, but by December 2008, it had plummeted to around $30 per barrel due to a massive reduction in global demand caused by the economic downturn.

Another key example is the COVID-19 pandemic in 2020. In April 2020, WTI Crude Oil futures prices went negative for the first time in history. This unprecedented event occurred because of a severe drop in demand as global lockdowns and travel restrictions led to an oversupply of oil. Storage facilities were full, and traders were willing to pay to have oil taken off their hands, resulting in negative prices.

WTI Crude Oil prices are highly volatile due to factors like geopolitical tensions, supply chain disruptions, and economic reports. For instance, the Gulf War in 1990-1991 led to a significant spike in oil prices. As conflict erupted in the Middle East, fears of supply disruptions caused oil prices to surge from around $20 per barrel in July 1990 to over $40 per barrel by October 1990. In addition, domestic factors such as changes in U.S. production levels can also cause significant price fluctuations.

During the shale oil boom in the early 2010s, U.S. production surged, leading to an oversupply in the market. This contributed to the dramatic fall in oil prices from over $100 per barrel in mid-2014 to below $50 per barrel by early 2015.

The most commonly traded types of crude oil are West Texas Intermediate (WTI) and Brent Crude. WTI is primarily produced in the U.S. and serves as a benchmark in North America, while Brent Crude, sourced from the North Sea, is used as a benchmark in Europe and other parts of the world.

WTI Crude Oil prices have been influenced by various historical events. For example, during the 2008 financial crisis, oil prices plummeted from a peak of over $140 per barrel in July 2008 to around $30 per barrel by December 2008 due to a significant reduction in global demand. Another notable period was in early 2020 when the COVID-19 pandemic led to a dramatic drop in oil prices.

Lockdowns and travel restrictions caused a massive decline in demand, leading to a brief moment in April 2020 where WTI futures prices went negative for the first time in history. Conversely, geopolitical events like the Gulf War in 1990-1991 caused sharp increases in oil prices due to fears of supply disruptions from the Middle East.

To start trading WTI Crude Oil, open an account with a broker that offers crude oil trading, such as zForex. Deposit funds into your account, access MT5 or cTrader, and begin by placing orders.