In short
- Two benchmarks: Brent and WTI.
- Retail leverage: 10:1.
- Many oil CFDs are based on futures and roll over before expiry.
Contract types
| Type | How it works | Watch out for |
|---|---|---|
| Futures-based CFD | Tracks a specific futures month; has an expiry | Rollover adjustments or automatic closure at expiry |
| Cash / undated CFD | Price derived from futures, no fixed expiry | Overnight financing |
What moves oil
- OPEC+ production decisions
- Weekly US inventory data
- Global growth expectations
- Geopolitical events affecting supply
- The US dollar
Risk management
Oil can move several percent in a session. With 10:1 maximum leverage, a 5% adverse move costs half the margin on a fully leveraged position. Use smaller sizes than you would on forex, and be careful around inventory releases and OPEC+ meetings.
Frequently asked questions
What leverage applies to oil CFDs in the UK?
Retail clients can use up to 10:1 on commodities other than gold.
What's the difference between Brent and WTI?
They're two benchmark crude oils. Brent is the main international benchmark; WTI is the US benchmark.
CFDs and spread bets are complex instruments and come with a high risk of losing money rapidly due to leverage. Most retail investor accounts lose money when trading these products. You should consider whether you understand how they work and whether you can afford to take the high risk of losing your money.