Crude Oil Investment in 2025: 5 Effective Methods from WTI to Brent

Why Is Crude Oil an Attractive Investment Choice?

Crude oil (oil) is not a new financial instrument, but 2025 opens up new opportunities for investors. The global oil market is currently influenced by many factors: geopolitical tensions, OPEC+ policy decisions, and uneven economic recovery worldwide. This causes oil prices to be highly volatile, creating many profit opportunities for savvy investors.

There are currently more than 160 types of crude oil traded worldwide, but the two most prominent standards remain WTI Crude Oil and Brent Crude Oil – the two most closely monitored codes on global trading platforms.

Understanding the Two Main Oil Standards: WTI and Brent

WTI Crude Oil (USOIL) – High-Quality US Oil

WTI (West Texas Intermediate) is mainly extracted from the continental regions of the United States. Key features of this oil type include:

• Higher quality, easier to refine into high-value gasoline products
• Higher transportation costs due to pipeline usage
• Lower liquidity due to production concentrated in one region

Brent Crude Oil (UKOIL) – North Sea Free-Flowing Oil

Brent Crude Oil is the standard for oil extracted from the North Sea. The reason Brent is preferred more in global trading is:

• Easier to transport via sea, reducing logistics costs
• About two-thirds of global oil contracts reference Brent prices, making it the dominant standard
• High liquidity, suitable for large trading volumes

Trading Code Differences

On reputable forex platforms, you will encounter:

• USOil: WTI futures contracts
• UKOil: Brent futures contracts
• USOilSpot & UKOilSpot: Spot contracts

The Global Oil Price Journey: From Past to Present

Phase 1: Stability (Before 1973)

Under the gold standard, crude oil prices remained stable at 2-3 USD/barrel for decades until the Fourth Middle East War in 1973 erupted. At that point, OPEC was formed to counter Western oil cartel dominance.

Phase 2: Turning Point (1973-1986)

Strong national consciousness in oil-producing countries drove prices sharply higher. By 1985, prices reached 30 USD/barrel. However, in 1986, when Arab countries lifted production limits, prices immediately plummeted to 10 USD/barrel.

Phase 3: Prolonged Volatility (1986-2000)

During this period, crude oil prices fluctuated within 10-30 USD, mainly influenced by supply rather than demand.

Phase 4: Boom (2000-2008)

After 9/11, global security tensions increased, and countries stockpiled strategic oil reserves. Middle East conflicts reduced extraction. As a result, oil prices soared to a record 147 USD/barrel in 2008 – the highest in history.

Phase 5: Innovation (2008-2015)

High prices stimulated investment in shale oil extraction (shale oil) technology. Supply surged, leading to a price decline. In 2015, the Obama administration allowed US crude oil exports to control excess production.

Phase 6: Global Shocks (2020-Present)

• 2020: COVID-19 reduced transportation demand, causing oil prices to collapse
• 2021-2022: Environmental policies and Russia-Ukraine conflicts pushed prices higher
• 2024: Oil prices decreased about 3% during the year, closing at 74.6 USD/barrel

Crude Oil Forecast 2025: Volatility Is the Norm

Brent oil is expected to go through a turbulent year following a “decrease-increase-decrease” pattern:

Early Year: Under pressure from global economic slowdown, prices fall below 63 USD/barrel – the lowest in 2 years.

May: Consolidation around 64-66 USD/barrel.

Mid-June: Escalating conflicts in the Middle East push prices up over 10%, surpassing 73 USD/barrel.

Later: Market cools down amid concerns of decline, prices return to 67-69 USD/barrel.

Second Half of the Year: If OPEC+ increases output and demand remains weak, the International Energy Agency (IEA) forecasts Brent prices could drop to around 61 USD/barrel.

Long-term Oil Price Determinants

1. Spot market supply-demand – Actual market balance
2. Inventory levels – Changes in global oil reserves
3. Geopolitics – Conflicts, crises affecting production
4. Market sentiment – Investor reactions, rumors, forecasts

Key Factors to Watch Closely

• OPEC+ decisions on output adjustments (especially June meeting)
• US oil inventory and production data
• China’s economic recovery progress
• Middle East tensions (Iran, Red Sea)

5 Investment Methods for Crude Oil: Which One Fits?

Method 1: Crude Oil CFDs – Simple and Flexible

CFD (Contract For Difference) is the most popular tool for beginner investors. It works like a “stock of crude oil” – the CFD price is the actual crude oil price.

Example: When WTI (USOIL) is at 70 USD/barrel, you predict it will rise, so you buy a USOIL CFD. When the price reaches 75 USD/barrel, you sell and profit 5 USD/barrel.

Main advantages:

• ✔️ Use of leverage – Only need 1% margin of the transaction value
• ✔️ Short selling – Profit when prices fall
• ✔️ Low capital requirement – Suitable for small investors
• ✔️ Flexibility – Can open/close positions anytime

Disadvantages: High risk due to leverage, overnight swap fees

Method 2: Futures Contracts (Futures) – For Professional Investors

Futures are official trading instruments on major stock exchanges. You and the counterparty sign a contract to buy/sell oil on a specific date at an agreed price today.

Features:

• Large scale: minimum 10,000 barrels per contract
• Suitable for institutional investors or brokers
• Strictly regulated by the exchange
• High transaction costs

Method 3: Oil ETFs – The Safest Investment

ETF (Exchange Traded Fund) is a “basket of investments” containing many assets related to oil. It is bought and sold like regular stocks.

Advantages:

• Lowest risk due to diversification
• Clear management fees
• Good liquidity
• Low entry price

Top 3 oil ETFs:

1. Vanguard Energy ETF (VDE) – Focuses on large energy companies
2. VanEck Vectors Oil Services ETF (OIH) – Specializes in oilfield services
3. United States Oil Fund (USO) – Tracks crude oil prices directly

Method 4: MLP – Investing in Oil Infrastructure

MLP (Master Limited Partnership) is an investment in companies transporting and processing crude oil.

Features:

• You become a “limited partner” in the company
• Share profits from pipelines and transportation activities
• Relatively stable income
• Suitable for investors seeking steady cash flow

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

Method 5: Oil Stocks – Traditional Investment

Buy stocks of major oil and gas corporations. Their stock prices are highly correlated with crude oil fluctuations.

Advantages: No need to worry about futures expiry, just analyze company fundamentals

Notable oil stocks: Sinopec, ExxonMobil, Royal Dutch Shell, BP, TotalEnergies

Comparison Table of 5 Investment Methods

Summary: If you have limited capital but are willing to accept high risk for high returns, crude oil CFDs are the best choice. For safety, ETFs or MLPs are wiser options.

5 Golden Rules for Success with Crude Oil

1. Master the 4 Main Drivers

Crude oil prices are directly affected by:

• US production and shale reserves (shale)
• OPEC decisions on extraction
• US dollar exchange rate – Oil is priced in USD
• Global demand – From transportation, industry

When all 4 factors move in the same direction (up or down), oil prices tend to move strongly.

2. Follow Daily News

The oil market reacts very quickly to news, even faster than actual price movements. To avoid being swept by herd mentality:

• Read news from reliable sources like U.S. Energy Information Administration (EIA)
• Follow official OPEC+ statements
• Check weekly inventory data

3. Choose the Right Oil Type for Your Strategy

WTI and Brent are extracted from different regions, influenced by different factors:

• Brent is heavily affected by Middle East developments and Red Sea region fluctuations
• WTI is influenced by US energy policies and EIA inventory data

Deep understanding of these differences will help you forecast more accurately.

4. Learn from History

“History doesn’t repeat itself, but it often rhymes.”:

• Compare current price patterns with past models
• Watch support/resistance levels from old peaks/valleys
• Identify historical triggers that may recur

5. Choose Tools That Fit Your Personal Finances

Finally, and most importantly: select trading tools and reputable brokers suitable for:

• Available capital – Don’t over-invest
• Risk tolerance – Avoid excessive leverage
• Time horizon – CFDs suit short-term trading, stocks/ETFs for long-term investing

Remember: The goal is long-term profit, not “get rich quick.”

Summary

2025 is an opportunity to invest in crude oil wisely. With 5 different methods, from flexible CFDs to safe ETFs, most investors will find a suitable option.

If you are just starting out: Begin with CFDs on platforms offering free demo accounts to practice.

If you are a conservative investor: ETFs or oil stocks are safer choices.

If you seek steady income: Explore MLPs.

Whatever method you choose, always remember that crude oil is a powerful trading instrument but also carries high risk. Educate yourself, plan carefully, and manage risks to succeed.