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Century Financial Consultancy LLC ("Century") does not offer investment advisory or portfolio management services nor guarantees investment returns. We do not accept or make payments in cryptocurrency or digital currency. Our official website is www.century.ae. Beware of fraudulent companies or websites posing as Century. We are not responsible for any losses from using fake websites or entities. Trading in financial markets involves a significant risk of loss which can exceed deposits and may not be suitable for all investors. Before you start, please ensure you fully understand the risks involved.

Oil Trading

Oil trading is the process of buying or selling oil while trying to earn a profit. Oil is one of the most widely traded commodities in the world.

Commodity trading, like that of crude oil, gold, etc., can be either done through physical settlement or trading CFDs (Contracts For Difference), futures and forwards.

Commodity prices are generally more stable than equities and cryptos due to their physical underlying.

Oil trading in UAE has been growing as investors realise the need to diversify their portfolios amid market volatility.

Ways to trade oil

Futures

Oil futures are an agreement to buy or sell oil at a specified date and price in the future.

Stocks

You can gain exposure to oil by investing in companies like ExxonMobil, Chevron, Baker Hughes, and so on.

ETFs

Oil Exchange Traded Funds (ETFs) track the price of oil as a commodity and are traded like a stock.

CFDs

Oil CFDs enable you to buy or sell oil without owning the underlying.

Trading Oil CFDs

Investors can trade oil online using a variety of tools like oil futures, oil forwards, oil-related stocks in the stock market, oil ETFs and oil CFDs.

Oil CFDs make it convenient for the investor to trade in the commodity. CFDs enable the investor to speculate on the commodity price movements without having the need to physically hold oil or other commodities.

Another benefit of opting to trade oil CFDs is that you can either go long (buy) or short (sell), so you can speculate the price movement in either direction.

Why trade oil CFDs?

Portfolio diversification

Oil CFDs can help you diversify your investment portfolio.

Hedging capabilities

Oil CFDs can act as a hedging instrument to balance your risk.

Inflation hedging

Oil prices tend to rise during times of high inflation leading to a good hedge.

Price Volatility

The significant volatility in oil prices provides ample trading opportunities.

Popular oil companies at a glance

Apart from futures, forwards, CFDs and ETFs, you can invest in companies directly engaged in the oil industry. Some of these companies are:

(CVX)

(XOM)

(BKR)

(COP)

(PXD)

Factors influencing gold prices

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Global oil production: Increase in oil production reduces oil prices, while a decrease in production increases the price
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Economic conditions: The demand for oil is positively correlated with the economic condition of the country and the world
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Strength of US Dollar: Oil is pegged to and exchanged generally in US Dollars. A strong dollar generally leads to lower oil prices and vice versa
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Global events: Natural disasters, wars and many other external shocks can also impact oil prices significantly

Trade Oil in UAE with Century Financial

Here's why you would prefer trading oil with the #1 choice of UAE's investors

Innovative platforms

Choose between TradeRoom platform, the next-generation MT5 platform, and the popular CQG, or TWS platforms as per your trading style.

Superior mobile trading app

The TradeRoom app offers an unparalleled gold trading experience with a customisable dashboard, instant notification alerts, advanced charts and standard security.

World-class support

Our multi-lingual support team is here to assist you with all your questions 24 hours a day, 7 days a week via email, telephone, and live chat.

Trusted provider

Century Financial is regulated by the Securities and Commodities Authority (SCA), which is a testament to its more than 30 years of industry experience