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WTI Crude Oil CFD

Trading Conditions:

Axi Symbol: USOIL

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3 Day Financing: Friday

Long Position Overnight Fee: displayed on the trading platform

Short Position Overnight Fee: displayed on the trading platform

Pricing is indicative. Past performance is not a reliable indicator of future results. Client sentiment is provided for general information only, is historical in nature and is not intended to provide any form of trading or investment advice - it must not form the basis of your trading or investment decisions. Trading Conditions apply to MT4 platform, terms may vary on other platforms. In case of discrepancy, the information on your trading platform will be correct.

What is USOIL?

USOIL is the trading symbol used by Axi for a CFD based on West Texas Intermediate, or WTI, one of the world’s leading crude oil benchmarks. WTI is commonly used to represent the price of oil produced in the United States.

WTI is classified as a light, sweet crude oil. “Light” refers to its relatively low density, while “sweet” means it has a low sulphur content. These qualities make WTI comparatively easy to refine into products such as petrol, diesel and jet fuel.

WTI prices are quoted in US dollars per barrel, and the benchmark is closely associated with Cushing, Oklahoma, the delivery location for the main WTI futures contract.

Different brokers and financial platforms may use different symbols for WTI-based instruments. Common names include:

  • USOIL
  • WTI Crude Oil
  • US Oil
  • XTI/USD

These names commonly refer to instruments based on WTI priced in US dollars, but symbols, prices and contract specifications may vary between providers.

What is an oil CFD?

An oil CFD, or contract for difference, allows traders to speculate on changes in the price of crude oil without purchasing, storing or taking delivery of the physical commodity.

The result of a USOIL CFD trade is the difference between the opening and closing prices.

Traders can:

  • Buy or go long if they expect the price of WTI to rise.
  • Sell or go short if they expect the price of WTI to fall.

CFDs are leveraged products, meaning traders can open a position by depositing a percentage of its total value as margin. Leverage can increase potential returns, but it also magnifies losses.

Oil CFDs may also involve costs such as the spread and overnight financing.

Although oil CFDs are often available on the same platforms as forex CFDs, USOIL is a commodity CFD rather than a forex currency pair.

USOIL CFDs compared with traditional oil exposure

Feature USOIL CFDs Traditional oil exposure
Ownership No ownership of physical oil Exposure may be obtained through futures, funds, shares or physical contracts
Trading direction Buy or sell Depends on the product used
Leverage Available Varies by product
Physical delivery Not required May apply to some futures or physical contracts
Trading costs Spread and possible financing charges May include commissions, fund fees, storage or contract costs
Settlement Based on the price difference Depends on the product

Oil CFDs are designed for trading price movements. They do not provide ownership of physical oil or shares in an oil-producing company.

USOIL vs UKOIL: What is the difference?

USOIL is generally based on West Texas Intermediate, the main US crude oil benchmark, while UKOIL is generally based on Brent, a widely used reference price for oil traded across international markets.

Feature USOIL / WTI UKOIL / Brent
Main market association United States International and seaborne oil markets
Reference location Cushing, Oklahoma North Sea crude oil market
Crude characteristics Light and sweet Light and sweet
Common influences US inventories, shale production and refinery activity Global supply, seaborne trade and geopolitical developments
Common alternative symbol XTI/USD XBR/USD

WTI and Brent prices often move in the same direction because both respond to global oil supply and demand. However, the difference between them, known as the Brent-WTI spread, can change because of US production, storage levels at Cushing, pipeline and export capacity, shipping costs and international supply disruptions.

WTI Crude Oil Historical Performance

WTI crude oil has experienced several periods of sharp volatility, reflecting changes in global supply, economic growth and geopolitical conditions.

Oil prices rose significantly during the 1970s as supply disruptions transformed the global energy market. Prices later weakened during the mid-1980s as higher production contributed to an oversupplied market.

WTI remained relatively subdued through much of the 1990s before rising rapidly in the 2000s. Strong demand and limited spare production capacity helped push WTI above $147 per barrel in July 2008. Prices then collapsed as the global financial crisis reduced economic activity and expected oil demand.

Another major downturn occurred between 2014 and 2016. Rapid growth in US shale production, combined with strong global output, pushed WTI below $30 per barrel in early 2016.

In April 2020, the May WTI futures contract settled below zero as the COVID-19 pandemic caused demand to collapse and available storage became scarce. The negative price applied to a specific expiring futures contract and did not mean that all physical oil or oil-related products had a negative value.

Prices recovered as economies reopened, and WTI climbed above $120 per barrel in 2022 after Russia’s invasion of Ukraine increased concerns about global energy supplies.

During 2023 and 2024, prices moderated as traders weighed OPEC+ production restraint against growing output outside the group and uncertainty about global demand. WTI prices declined further on average in 2025 as higher supply and concerns about an oversupplied market placed pressure on crude oil.

In 2026, the US-Iran conflict and disruptions to shipping through the Strait of Hormuz contributed to sharp swings in oil prices, as traders assessed how tensions around major production regions and transport routes could affect global supply.

What Affects the Price of WTI Crude Oil?

WTI prices are influenced by both US-specific developments and changes in the wider global oil market.

Global Oil Supply and Demand

Oil prices tend to rise when expected demand exceeds available supply and fall when production is higher than consumption.

Demand is influenced by industrial activity, transport, air travel and the wider economic cycle. Even small changes in expected supply or demand can cause significant price movements.

OPEC+ Production Policy

OPEC and its partner countries, collectively known as OPEC+, coordinate production targets for a large share of the global oil market.

Production cuts may support prices by reducing expected supply, while production increases or poor compliance with agreed limits can place downward pressure on prices.

Changes in US production, particularly from regions such as the Permian Basin, can also affect WTI and global supply expectations.

Oil Inventories and Refinery Activity

Crude oil inventories indicate how much oil is being stored rather than consumed or processed.

A larger-than-expected inventory build can suggest that supply is exceeding demand, while a larger-than-expected draw can indicate tighter market conditions. Inventory levels at Cushing can have a particularly direct effect on WTI prices.

Refinery maintenance, unplanned shutdowns and changes in refinery utilisation can also influence demand for crude oil.

Geopolitical Events

Wars, sanctions, political instability and attacks on energy infrastructure can disrupt production or transportation.

Prices may rise even before supply is physically lost if traders believe that a conflict could affect major oil-producing countries or important shipping routes.

The US Dollar, Interest Rates and Economic Growth

WTI is priced in US dollars. A stronger dollar can make oil more expensive for buyers using other currencies, while a weaker dollar can have the opposite effect.

Interest-rate decisions may also affect WTI indirectly by influencing economic growth, the US dollar and investor sentiment.

Stronger economic activity generally supports demand for transport and industrial fuels, while slower growth can reduce expected consumption.

Weather Conditions, Seasonality and Government Policy

Hurricanes and severe storms can interrupt offshore production, pipelines, ports and refineries in the United States.

Seasonal travel, winter heating demand and changing refinery activity can also affect prices.

Government policies concerning drilling, sanctions, strategic petroleum reserves, emissions and alternative energy can influence both current supply and expectations of future oil demand.

What to Watch Out for When Trading WTI Crude Oil?

WTI traders monitor scheduled reports and unexpected developments that may affect oil supply, demand and market expectations.

EIA Weekly Petroleum Status Report

The US Energy Information Administration releases weekly estimates covering crude oil inventories, production, imports, exports, refinery activity and petroleum-product stocks.

Unexpected changes in commercial crude inventories can trigger rapid movements in WTI prices.

API Inventory Estimates

The American Petroleum Institute publishes estimates of US crude oil and petroleum-product inventories ahead of the official EIA report.

The figures can influence short-term expectations, although they may differ from the subsequent government data.

OPEC+ Meetings and Announcements

OPEC+ production decisions are among the most closely watched events in the oil market.

Traders may consider the headline production target, the timing of changes, voluntary cuts and whether member countries are complying with agreed quotas.

EIA, OPEC and IEA Market Reports

Monthly and periodic reports from major energy organisations provide forecasts for oil supply, demand, production and inventories.

Revisions to these forecasts can change the market’s view of whether oil is likely to be in surplus or deficit.

US Production and Drilling Data

Reports covering US crude oil output and drilling activity can provide clues about future supply.

However, changes in the number of active rigs do not always translate immediately into changes in production because drilling efficiency and well productivity also matter.

Major Economic Releases

GDP, manufacturing surveys, employment reports and other economic indicators can affect expectations for energy demand.

Inflation and interest-rate decisions may also influence WTI through their effect on the US dollar and market sentiment.

Geopolitical and Weather Developments

Conflicts, sanctions and disruptions involving major producers or shipping routes can cause sudden volatility.

Traders may also monitor hurricane forecasts during the Atlantic hurricane season because storms can affect US production and refining infrastructure.

Because significant oil-market news can occur outside scheduled reporting times, USOIL positions may experience sharp movements and price gaps.

How to trade USOIL CFDs

1. Choose and open your account

Axi offers different account types depending on how you plan to trade USOIL:

  • Standard Account: Best for everyday traders. You pay $0 commission*, as the costs are included in the spread.
  • Pro Account: Best for more experienced traders. Access tighter spreads with a commission charged per round trip per lot.
  • Elite Account: Available to qualifying high-volume traders in select jurisdictions.

*Other fees may apply.

2. Fund your account

Fund your account via the Client Portal using:

  • Credit or debit cards: Instant funding with $0 Axi fees*
  • Bank transfer: 1–3 business days
  • E-wallets: Neteller or Skrill (availability varies by region)

*Axi does not charge fees, but your provider may.

3. Access the oil market through MT4 or the Axi app

  • Desktop: Download MT4 or log in to the Axi Trading Platform in your browser.
  • Mobile: Use the Axi Trading Platform app (iOS/Android) to trade USOIL on the go.

4. Execute your USOIL trade

Open USOIL and set your order:

  • Volume (lot size): Choose position size within USOIL limits
  • Direction: Buy if you expect prices to rise, sell if you expect them to fall
  • Leverage: Applied based on your account type and region

USOIL CFD contract specifications

USOIL specifications define how the instrument is priced and traded. Always check the latest details on the Axi platform before trading.

Key details include:

  • Symbol: Instrument name on the platform
  • Contract size: Underlying oil per lot
  • Minimum trade size: Smallest allowed position
  • Maximum trade size: Largest allowed position
  • Leverage & margin: Capital required to open positions
  • Trading hours: When trading is available
  • Minimum price movement: Smallest price change
  • Spread: Difference between buy and sell price
  • Overnight financing: Charges/credits for holding positions overnight
  • Three-day financing: Adjustment applied over weekends

Trading hours and specifications may change due to holidays, market conditions or liquidity provider updates. Always check the latest information before trading.

The data is sourced from third-party providers. This information is not to be construed as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product, or instrument; or to participate in any trading strategy. It has been prepared without taking your objectives, financial situation, or needs into account. Any references to past performance and forecasts are not reliable indicators of future results. Axi makes no representation and assumes no liability regarding the accuracy and completeness of the content in this publication. Readers should seek their own advice.

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