How to invest in oil trading? The oil market is one of the fastest moving markets, and the oil trade is linked to the rate of supply and demand, and the work in the oil trade is not linked to quantities because of its global strategic importance and a great impact on the global movement. Economy and Energy.

Investing in oil trading
Oil and natural gas are a natural resource for energy and are extracted from the ground, and you can invest in oil by buying shares in oil companies or oil exchange-traded funds. Two types of oil are used as a benchmark for oil pricing in the global economy:

Investing in oil trading in West Texas Crude
It is a crude oil extracted and produced in Texas, USA. It is known as “light oil”, because it is less dense compared to any other crude oil produced by most of the OPEC countries, and it is described as sweet due to the low percentage of sulfur compounds in its composition.

Investing in oil trading in Brent crude oil
Brent crude oil is extracted from the North Sea region, Brent crude is light and sweet like WTI, and the price of the two types of oil are related to each other and affect oil market prices.

WTI is more expensive than Brent crude, and with the advancement of technology used in drilling and hydraulic fracturing, WTI has become close to Brent crude, and if the price of one goes up and the price of the other goes down, price levels will be disturbed.

Factors affecting investment in oil trading
The oil trade market is affected by political crises and wars, especially in the oil-exporting countries that depend on it for their national economy. These factors include:

Renewable energy and the discovery of alternative sources of energy on oil circulation threaten to reduce its use and reduce its prices due to trends in the study of dependence on it.
Oil extraction and refining are high-cost activities, especially the extraction of oil reserves from the depths of the earth.
Consumption and demand, especially from developed countries that consume oil to operate their industrial and economic projects, such as the United States, Japan, China, Germany and the United Kingdom.
Economic and Political Conditions: Obtaining oil and its extensions is affected by economic and political factors, such as inflation, poverty and unemployment rates, which lead to a decrease in the rate of oil consumption and an increase in the cost of obtaining it. Political unrest and rebellions reduce oil imports and expose imported oil to hijackings or piracy.
Natural disasters and accidents: Natural disasters such as earthquakes, storms, weather conditions and other seasonal factors affect oil drilling sites and refinery sites, and affect oil production rates and thus prices.
Oil-producing countries and OPEC can intervene and influence the trading price of oil by increasing or decreasing production in oil-producing countries.
The trading of oil is influenced by the US dollar: the relationship between them is inverse, the lower the dollar against currencies, the higher the price of oil, since oil is priced in US dollars.
How to invest in oil trading for beginners
So that you can trade oil and profit as a beginner trader and do not have a lot of experience that supports you in profit from the first deal and protects you from huge losses, you have to follow some tips in order to invest in oil trading:

Double-check with the brokerage firm you will be trading with, and make sure they are reliable, legal and reputable.
Do not start trading oil unless you have trained well and learned a lot about oil, how to invest in it, and the right time to trade, whether to buy or sell.
Don’t be adventurous: it can be very expensive to get into trading oil or any other commodity, so you should start with a small amount.
Know the rate of supply and demand: Oil prices change very quickly according to the volume of supply and demand, and in order to ensure the success of your deal and make some profit, be aware of the prices first.
Take advantage of your tools: The trading platform provides you with many tools that will benefit you in trading, such as stop-loss orders.
It allows you to close the position when the prices are falling to protect you from huge losses, know well these tools in your favor.