Inside the global oil market
An Energy Commodity Connected to Economic Activity
Crude Oil is a key input across transportation, manufacturing, aviation, petrochemicals and industrial activity.
Millions of barrels are produced, transported, refined and consumed around the world each day, creating a market closely connected to the global economy.
Unlike Gold or Silver, Crude Oil is particularly sensitive to changes in physical supply, consumption, inventories and production policy, giving it a different market dynamic.
Prices continuously reflect expectations about how much oil the world is producing and consuming. When that expected balance changes, prices can react quickly.
Two oil markets to know
WTI and Brent Crude Oil
WTI Crude Oil
West Texas Intermediate is a major benchmark associated primarily with the United States. US production, inventories, refinery activity and energy demand are closely followed when assessing WTI.
Brent Crude Oil
Brent Crude is an international benchmark used as a reference across regions. It can respond strongly to international supply, global demand, production policy and geopolitical developments.
Who influences global oil supply?
Producers and the Numbers Markets Watch
OPEC+
Production decisions from OPEC and participating non-OPEC countries can influence global supply expectations and the future supply-demand balance.
United States
Changes in US production, inventories and refinery activity are closely followed across global energy markets.
Other Major Producers
Production developments across other oil-producing countries can also influence global supply conditions.
The Numbers Oil Markets Watch
Oil Inventories
Stored Crude Oil and petroleum products indicate whether supply is building or being reduced.
Production Levels
Output changes from major producers affect expectations about future global supply.
Refinery Activity
Refineries convert crude into gasoline, diesel and aviation fuel; activity affects demand for crude.
Global Consumption
Transportation, manufacturing, aviation and industry all contribute to energy use.
What moves Crude Oil?
Six Key Market Drivers
OPEC+ Decisions
Production policy affects expectations about oil available to global markets.
Global Economic Growth
Economic activity changes expectations about transport, manufacturing and energy demand.
Geopolitical Developments
Conflict, sanctions and instability near producers or transport routes can influence conditions.
US Oil Inventories
Inventory changes are closely followed as an indicator of domestic supply and demand.
Production Disruptions
Problems affecting fields, pipelines, ports or infrastructure can reduce available supply.
US Dollar
Oil is commonly priced in dollars, so significant currency movement can affect conditions.
OPEC+ and the Oil Market
OPEC+ coordinates aspects of production policy. When targets increase, decrease or remain stable, markets assess the effect on future availability. Policy is only one part of the market: production outside the group, global demand, inventories and geopolitics also matter.
Crude Oil and the global economy
Energy Demand Changes with Activity
- Transportation: cars, trucks and shipping contribute to fuel demand
- Aviation: passenger and cargo activity affects aviation-fuel demand
- Manufacturing: industrial production requires energy and petroleum materials
- Petrochemicals: crude is feedstock for plastics, chemicals and manufactured products
When Geopolitics Meets Energy
Oil production and transportation are distributed across different regions. Developments affecting producers, pipelines, ports, shipping routes or international trade can create uncertainty around future supply.
Markets may respond rapidly when an event changes expectations about normal production and transport. The effect varies depending on whether physical supply is affected and how other producers respond.
Why Crude Oil Can Move Quickly
Unexpected inventories, production announcements, geopolitical events or economic developments can cause markets to reassess the expected balance. Periods of uncertainty can result in increased volatility and faster movement.
Crude Oil with CFD First
Stay Connected to Global Energy
Global Oil Access
Follow available Crude Oil price movements through CFD First.
WTI & Brent
Access available major oil benchmarks within the trading environment.
Web & Mobile
Stay connected through supported web and mobile environments.
Market Information
Follow economic, supply, demand and geopolitical developments.
Before you trade
Important Risk Information
Crude Oil trading involves significant risk. Prices can change rapidly in response to production decisions, inventory data, economic conditions, geopolitical developments, supply disruptions and changes in global demand.
Periods of uncertainty or unexpected events can result in substantial volatility. Clients should understand the characteristics, applicable trading conditions and risks associated with the products they trade.
Market information and educational content are provided for general informational purposes and do not guarantee future market performance.