Guide to Investing in WTI and Brent Crude Oil in 2025: 5 Effective Strategies

The global crude oil market has always been a focal point for financial investors. With continuous price fluctuations, 2025 promises to bring new opportunities for those who understand how this market operates. The following article will help you master basic to advanced knowledge about the two main oil standards—WTI and Brent—as well as the most effective investment methods.

Difference Between Brent Oil and WTI Oil

When following economic news, you often hear figures about today’s global oil prices. However, few know that there are over 160 types of crude oil traded on international exchanges. Each type of oil has its own chemical characteristics—from sulfur content to density or lightness—leading to different economic values.

In the forex oil code system, the two most widely recognized standards are:

• USOil: WTI futures contract
• UKOil: Brent futures contract

Brent Oil: Global Standard

Brent Oil (UKOIL) is extracted from the North Sea region and is considered the benchmark for most global oil contracts. Its light and sweet quality makes refining into gasoline, diesel, and other energy products optimal. Thanks to convenient maritime transportation systems, about two-thirds of the world’s crude oil contracts currently reference Brent prices. This explains why it is considered the most widely used oil standard.

WTI Oil: US Standard

WTI Oil (USOIL) is extracted from domestic U.S. production areas. Although its chemical quality is better—denser and easier to refine—transportation costs via pipelines are higher. As a result, WTI oil prices are usually lower than Brent due to higher trading demand for Brent in the international market.

History of Global Oil Price Fluctuations

Since the industrialization era, crude oil has become a strategic asset. Initially, when the gold standard system was in place, oil prices remained stable at around 2-3 USD/barrel for decades. The situation changed when the Fourth Middle East War broke out in 1973 and OPEC was established to counter Western oil corporations, causing oil prices to surge to about 30 USD/barrel by 1985.

1986 marked a turning point when Arab countries lifted production limits, causing oil prices to plummet to 10 USD/barrel. For most of the subsequent years, prices fluctuated between 10-30 USD.

The September 11, 2001 event changed the landscape as global security concerns increased, countries increased strategic oil reserves, and conflicts in the Middle East reduced production. As a result, oil prices hit a record 147 USD/barrel in 2008. This high price stimulated investment in shale oil extraction technology, increasing global supply.

In 2020, the COVID-19 pandemic severely reduced transportation demand, pushing oil prices to disastrous levels. In 2022, the Ukraine-Russia conflict caused oil prices to rise again. In 2024, under supply-demand pressures and OPEC production adjustments, oil prices decreased by about 3%, closing at 74.6 USD/barrel.

Oil Price Outlook in 2025

Forecasts for 2025 show a “drop first, rise in the middle, then decline again” pattern. Early in the year, affected by weak global economy, oil prices fell below 63 USD/barrel in early April—the lowest in 2 years.

In May, a consolidation phase at 64-66 USD/barrel was observed. However, in mid-June, geopolitical tensions escalated with events in the Middle East, pushing prices up more than 10%, surpassing 73 USD/barrel. As concerns eased, prices quickly dropped back to the 67-69 USD/barrel range.

If geopolitical tensions continue to ease and OPEC+ signals increased production, the International Energy Agency (IEA) forecasts Brent prices may weaken in the second half of 2025, with an average year-end level around 61 USD/barrel. However, geopolitical risks remain a significant factor, causing price trends to fluctuate strongly.

The Five Most Effective Oil Investment Methods in 2025

( Method 1: Trading Crude Oil CFDs

This is the simplest way to participate in the crude oil market. The )CFD### contract functions as a certificate for crude oil, with its price reflecting the actual market price of WTI or Brent.

Main advantages of CFDs include:

• High leverage: Only 1% margin required
• Flexibility: Allows short selling when predicting price declines
• Low capital requirement: Suitable for investors with limited funds
• Two-way profit opportunity: Profit whether the market rises or falls

( Method 2: Futures Contracts )Futures###

For professional investors with large capital, crude oil futures contracts on listed exchanges are suitable. These contracts allow buying and selling oil at a specific future date at an agreed price. They are popular hedging tools for traders, but the large transaction size (minimum 10,000 barrels/contract) makes them mainly suitable for institutional investors.

( Method 3: Oil ETFs

ETFs )or also called index funds### are diversified investment baskets including assets related to oil. These funds:

• Have lower volatility due to diversification
• Have lower entry prices compared to futures
• Help avoid risks of individual stock trading
• Can be bought and sold like regular stocks

Prominent oil ETFs include Vanguard Energy ETF (VDE), VanEck Vectors Oil Services ETF (OIH), and United States Oil Fund (USO).

( Method 4: Investing in MLP )Master Limited Partnership###

MLP is a direct investment form into oil companies as limited partnerships. When investing in MLPs, you become a partner with profit-sharing rights. Oil MLPs mainly operate pipeline and transportation businesses. Popular MLPs include Enterprise Products Partners (EPD), Western Gas Partners (WES), and Marathon Petroleum Logistics (MPLX).

( Method 5: Buying Shares of Oil Companies

This is an indirect investment through oil exploration and production companies. Stock prices are highly correlated with crude oil fluctuations. To choose suitable stocks, analyze revenue and profit growth. Preferred stocks include Sinopec, ExxonMobil, Royal Dutch Shell, BP, and Total SA.

) Comparing Investment Methods

Overall, if you have limited capital and are willing to accept high risks for high profits, crude oil CFDs are the optimal choice with low startup costs and high flexibility.

Five Key Principles for Investing in Crude Oil

1. Monitor Four Main Factors

Oil prices are influenced by four main drivers: U.S. production, shale oil reserves, OPEC output, the US dollar, and global demand. When positive news about these factors converges, oil prices tend to spike, and vice versa.

2. Regularly Update News

The crude oil market is mainly driven by news rather than actual conditions. To avoid herd mentality, follow reputable agencies like the U.S. Energy Information Administration ###EIA### and the International Energy Agency (IEA).

( 3. Choose the Appropriate Oil Standard

Brent and WTI are extracted from different regions and are affected differently. Understanding the fundamental differences and influencing factors of each will help you forecast prices more accurately.

) 4. Analyze History to Predict the Future

History often repeats itself in financial markets. Regularly comparing current price patterns with past data will help you make more accurate trading decisions.

5. Select Reputable Tools and Brokers

Choosing tools that match your financial capacity and risk appetite is very important. This helps you avoid unnecessary heavy losses.

Summary

Crude oil remains a popular investment tool in 2025. With five different investment methods—CFD, futures, ETF, MLP, and stocks—each investor can find a strategy suitable for their capital needs and risk appetite. For beginners or those with limited funds, crude oil CFDs offer a good balance between accessibility and profit potential, especially when trading with forex oil codes effectively.