Five Effective Ways to Invest in WTI and Brent Crude Oil: Investment Guide for 2025

Global crude oil has always been one of the most popular investment tools among traders. But the question is, is 2025 the right time to start? Let’s explore in detail the outlook for the oil market and discover the 5 most suitable WTI and Brent investment strategies.

What Are WTI and Brent Crude Oil?

When reading news, you often hear about “today’s global oil prices rising or falling,” but few know that there are over 160 types of crude oil traded worldwide. Each type has different chemical properties (such as sulfur content, density), leading to different economic values.

In the financial markets, the two most widely used oil standards are West Texas Intermediate (WTI Crude oil) and Brent Crude oil. On reputable forex platforms, the oil symbols are as follows:

• USOil = WTI futures contract
• UKOil = Brent futures contract
• USOilSpot = WTI spot contract
• UKOilSpot = Brent spot contract

Brent Oil: Global Standard

Brent Oil (UKOIL) is extracted from the North Sea area, characterized as light and sweet, ideal for refining gasoline, diesel, and other energy products. Since it is transported by sea, logistics costs are low, making about 2/3 of global crude oil contracts reference Brent prices.

WTI Oil: US Standard

WTI Oil (USOIL) is extracted from inland US regions and transported via pipelines, so transportation costs are higher. Although chemically better (more refined), due to Brent’s flexible transportation, the demand for Brent trading is higher, often resulting in Brent prices being above WTI.

The Journey of Global Oil Price Fluctuations: From Past to Present

Since the industrial era, crude oil has become a strategic resource for nations. After two world wars, the US mandated that oil be traded in USD to control this resource.

Stable period (before 1973): Under the gold standard system, oil prices remained at 2-3 USD/barrel for decades until the Fourth Middle East War.

Boom period (1973-1985): When OPEC was formed to counter Western oil companies, prices surged to 30 USD/barrel. At this time, oil prices were driven by supply rather than demand.

Decline period (1986 onwards): When Arab countries lifted production limits, oil prices plummeted from 30 USD to 10 USD/barrel.

Turbulent period (2000-2008): The 9/11 event heightened security tensions, countries stockpiled strategic oil, and Middle East conflicts reduced extraction. A record of 147 USD/barrel was set in 2008.

Innovative period (2008-2015): High oil prices spurred shale oil development (shale oil), increasing supply and causing prices to decline. In 2015, the US allowed crude oil exports to stabilize the market.

Recent volatility (2020-2024): COVID-19 reduced transportation demand, causing oil prices to crash. Later, environmental policies tightened shale oil supply, and the Ukraine-Russia conflict in 2022 pushed prices back up. In 2024, oil faced supply-demand pressures, OPEC production adjustments, and Middle East tensions, leading to a 3% annual decrease, closing at 74.6 USD/barrel.

Long-term Strategic Factors Influencing Prices

• Supply-demand in the spot market (spot market)
• Global oil inventory levels
• Geopolitical situation
• Investor sentiment and financial volatility

In the short term, OPEC+ decisions and geopolitical events are the main drivers. Investors should monitor: OPEC+ meetings, US inventory data, China’s economic recovery, and Iran and Red Sea region developments.

Oil Price Forecast 2025: Turbulence and Opportunities

The Brent oil trend in 2025 is forecasted as “decline at the start, rise in the middle, then decline at the end.” Early in the year, the global economy weakens, low demand causes prices to fall below 63 USD/barrel (lowest in 2 years). In May, prices trade at 64-66 USD/barrel. Mid-June, escalation occurs as Israel strikes Iran, causing a sudden increase of over 10%, surpassing 73 USD/barrel. However, concerns about decline push prices back down to 67-69 USD/barrel.

Looking ahead, if geopolitical tensions ease, OPEC+ increases output, and demand weakens, the International Energy Agency (IEA) forecasts Brent oil to weaken in the second half of 2025, with an average year-end price around 61 USD/barrel. Overall, the first half of 2025 will be dominated by geopolitical risks, while supply-demand pressures remain, creating oscillating trends with a downward bias.

5 Ways to Invest in Crude Oil: Find the Strategy That Fits You

Method 1: Investing in Crude Oil via CFDs

CFD is the simplest way to participate in the oil market. This tool acts like a “oil stock code,” with CFD prices reflecting the standard oil prices (WTI or Brent).

Example: On 20/03/2020, USOIL trades at 23.22 USD/barrel. You believe prices will rise, so buy a WTI oil CFD. This is equivalent to buying a barrel of oil, waiting for the price to increase, then selling to profit.

Advantages of CFDs:

• Use leverage: just 1% margin of the trade value to open a CFD position
• More flexible: allows short selling (short) — when prices are high, borrow CFDs to sell, then buy back when prices fall
• Two-way profit: regardless of market rising or falling, you have opportunities to profit

Method 2: Investing in Crude Oil via Futures (Future)

For professional investors with large capital, futures are a preferred choice. These are contracts to buy/sell oil on a predetermined future date at an agreed price today.

This tool is popular among traders for hedging against price volatility. However, large transaction sizes (minimum 10,000 barrels per contract) mainly suit institutional investors.

Method 3: Investing in Crude Oil via ETFs

ETFs are “investment baskets” containing multiple assets, helping diversify risk. They have low volatility and lower risk compared to individual assets.

Advantages:

• Buy and sell like regular stocks
• Lower initial capital than futures
• Provide diversification
• Avoid high volatility risks of individual stocks

Top 3 oil ETFs: Vanguard Energy ETF (VDE), VanEck Vectors Oil Services ETF (OIH), United States Oil Fund (USO).

Method 4: Investing in Crude Oil via MLPs

MLP (Master Limited Partnership) is a direct investment form into oil companies as limited partnerships. You become a limited partner, not making decisions but sharing profits.

MLP companies often specialize in pipelines and crude transportation. Their business efficiency differs from traditional exploration companies.

Notable MLPs: Enterprise Products Partners (EPD), Western Gas Partners (WES), MPLX LP (MPLX).

Method 5: Investing via Oil Company Stocks

This is indirect investment through oil exploration companies. Their stock prices are highly correlated with crude oil price fluctuations.

To choose well, analyze business performance, revenue growth, and profit margins. Some prominent stocks include Sinopec, ExxonMobil, Royal Dutch Shell, BP, and Total SA.

Comparison Table of 5 Investment Methods

Conclusion: With small capital and willingness to accept high risk for high returns, crude oil CFDs are the most optimal choice. The main advantage of CFDs is investing in crude oil without physical storage, high leverage, two-way trading, and numerous opportunities from all market movements.

5 Golden Rules for Investing in Crude Oil

1. Understand the 4 Price Drivers of Oil

Production volume and US shale reserves, OPEC decisions, US dollar, and consumption demand. When positive news about these four factors converge strongly, oil prices surge. Conversely, negative news will cause prices to drop.

2. Follow Daily News

Oil markets fluctuate based on news, not actual conditions. Many oil-producing countries exploit this to profit. Avoid herd mentality — regularly follow news from reliable sources like the US Energy Information Administration.

3. Choose Between Brent and WTI

Each oil type is extracted from different regions, so they are affected by different factors. Understanding the basic differences between the two standards will help you predict prices more accurately and trade profitably.

4. Analyze Price History

History repeats itself, so regularly compare current price patterns with past data to make correct position decisions. Past volatility and models will help you identify future trends.

5. Select Reputable Tools and Brokers

Finally, choose tools that match your financial capacity and risk appetite. This helps avoid heavy losses and maximizes profit opportunities.

Conclusion: Ready for 2025?

Crude oil remains a long-standing and popular financial instrument. 2025 will be a year full of opportunities but also challenges.

You have 5 ways to invest: CFD, futures, ETFs, MLPs, and oil company stocks. Each method suits different capital levels and risk tolerances. If you have small capital and are willing to accept high risk for high returns, crude oil CFDs will be the most suitable investment product in 2025. Start by understanding oil symbols in forex, familiarize yourself with the factors affecting prices, and choose strategies aligned with your personal situation.