You cannot easily buy a barrel
Crude oil is bulky, needs storage and is hard for an individual to hold. Investors therefore use contracts and funds that follow its price.
Futures
WTI and Brent futures are the benchmark contracts. One contract covers 1,000 barrels, they use leverage and they expire every month, so positions must be rolled or closed.
Oil ETFs and ETNs
Many oil funds hold futures and roll them. When the curve is in contango, rolling costs money and the fund can lag the spot price over time, as explained in our contango guide. Read how a fund is built before you buy.
CFDs
CFDs on WTI or Brent let you speculate with leverage. They carry the same high risk as other leveraged products, and overnight financing is charged on open positions.
Energy company shares
Shares of oil producers and service companies are influenced by crude prices but also by costs, debt, taxes and management. They do not move one for one with oil.
Keep in mind
Oil prices react to OPEC+ decisions, inventories, the dollar and geopolitics, and they can be very volatile. This guide is general education, not a recommendation.
Related:Contango and backwardationLive oil pricesWTI vs Brent
Educational content, not investment advice.