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How to trade oil today. Forex education for beginners GB

  1. Oil price today

  2. How to trade oil today

Oil prices rose on Monday as fears of a recession in the U.S., which drove prices down for three straight weeks for the first time since November, started receding.

Brent crude futures were up 43 cents, or 0.6%, at $75.73 a barrel at 0624 GMT. U.S. West Texas Intermediate (WTI) crude futures were up 45 cents, also 0.6%, at $71.79 a barrel.

"Oil's rebound follows energy stocks' comeback on Wall Street last Friday after the U.S. reported strong job data, which eased concerns about an imminent economic recession that led to the selloff early in the week," said Tina Teng, an analyst at CMC Markets.

Fears that the U.S. banking crisis will slow the economy and sap fuel demand in the world's biggest oil consuming nation drove the Brent benchmark down 5.3% last week, while WTI plunged 7.1%.

However a healthy U.S. jobs report for April, a weaker dollar, and expectations of supply cuts at the next meeting of the Organization of the Petroleum Exporting Countries and allies, together called OPEC+, in June, helped the benchmarks rebound about 4% each on Friday.

"Crude prices are trying to stabilize as energy traders wait to see if OPEC+ might have to signal they are willing to reduce output even further," said Edward Moya, an analyst at OANDA.

Goldman Sachs analysts said in a note on Saturday that concerns over near-term demand due to stress in the U.S. banking system and an industrial slowdown, and elevated global supply due to limited compliance with OPEC+ cuts were "overblown".

The investment bank maintained its Brent price forecast of $95 per barrel by December and $100 by April. ANZ Research analysts said they believed that the market focus would now shift away from economic concerns to tightening oil supply.

The United States is expected to report consumer price inflation figures for April on Wednesday, which could provide further clues on interest rate moves amid broad expectations that the U.S. Federal Reserve will pause rate hikes.

Traders this week will also keenly watch Chinese economic indicators including trade, inflation, lending and money supply figures for April, as market participants continue to gauge economic recovery in the world's second largest oil consumer.

How to trade today?

Trading oil in the forex market is done through a financial instrument called a "contract for difference" (CFD). A CFD is an agreement between a buyer and seller to exchange the difference in the value of an underlying asset (in this case, oil) between the time the contract is opened and closed. Here are the steps to trade oil in forex:

  1. Open a forex trading account with a reputable broker that offers oil CFDs.

  2. Fund your account with the amount of money you want to use for trading.

  3. Find the oil CFD in the trading platform and select the amount you want to trade.

  4. Choose your trade direction – if you believe the price of oil will go up, select "buy" or if you believe it will go down, select "sell".

  5. Set your stop loss and take profit levels – this will help you manage your risk and potential profit.

  6. Monitor your trade – keep an eye on the price of oil and any news that may impact the market.

  7. Close your trade – when you are ready to exit the trade, you can close it manually or set a limit order to close it automatically when the price reaches a certain level.

It's important to remember that trading oil in forex is a high-risk activity and should be approached with caution. You should also ensure that you have a solid understanding of trading strategies and risk management techniques before you start trading.


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