How to Buy and Sell Oil?

The decline in oil managed to attract the attention of investors. People who wanted to turn the decline into an opportunity started to research to buy oil.

With the acceleration of the coronavirus epidemic around the world, the restriction decisions caused a decrease in the demand for oil. Therefore, there was a slight decrease in oil prices. With the global spread of vaccination studies and the decision of OPEC+ to increase oil production, investors took action to turn the fall in oil prices into an opportunity. Investors living in Turkey, on the other hand, are asking "How to buy and sell oil?" After OPEC+ made the decision to increase oil production, oil prices were pulled to $ 60 levels. Both this decision and the fact that the coronavirus epidemic accelerated its spread all over the world and the countries tightened their coronavirus restrictions, there was a decline in demand for oil. On the other hand, data on economic activity from the USA and China in today's transactions caused oil prices to rise slightly. Brent oil was traded at $ 62.80 a barrel, while West Texas type (WTI) crude oil was traded at $ 59.37.

Trading with Forex

It can be purchased by contract without taking the oil physically. Investors who want to act according to the increase and decrease in oil prices can make their transactions with forex. Those who want to buy oil can purchase American crude oil and Brent oil in leveraged transactions. Term contracts have maturity start and end dates. Positions that are open on the maturity date are automatically closed. Oil can be bought and sold as a futures product. Along with the developments regarding the outbreak, both Brent oil and American crude oil contracts have become the most demanded and most traded instrument among difference contracts (CFDs). The sharp increases and decreases in oil prices affect macroeconomic variables such as global economies' growth, current account deficit and industrial production.

How to Buy Oil in Forex?

If an example is given for the purchase of American Crude Oil, the investor must first have a collateral in order to be able to operate in a market with a leverage of 10 for 1. If this is approximately the price of 1 barrel of oil 60 dollars, the amount of collateral should be around 60,000 dollars. This guarantee is caused by the size of the position taken will be 1000 barrels and the formula 1000 X 60 = 60.000 dollars. Investors who will carry out leveraged transactions should have information about this issue and take into account that there may be big differences between their losses/gains. In case of lack of information, it becomes inevitable that the damage will be great.