Jump to content
  • 0

Trading on the recovery in Oil prices.



Hi everyone,

I personally think the price of oil will recover sharply over the next year and want to trade on this.

I cannot seem to work out on IG whether I should be using shares dealing (an Oil ETF) or CFD, or spread betting. It looks as though share dealing and spread betting are free of CGT, but the disadvantage of spread betting is there are only daily or quarterly expiries whereas I want to invest for longer. Is there anything else I have missed.

All advice welcome please and which oil product o trade would be helpful...also any leveraged products ?

Thanks in advance for your help.


Link to comment

1 answer to this question

Recommended Posts

  • 0


The only real difference here is CGT.

If the benefit of writing CGT loss is of no benefit to you then spread betting would be possibly be the way forward certainly if you want a leveraged product. (but be careful of the contract size not to expose your position)

Im looking at a long shot too and expect it to rise over the next 4-6 months to at least $45 (WTI) and on to $55 

I am buying forward contracts (MAY) as (JUN) are a little pricey.

The plus here is that with forward contracts you do not get charged overnight funding charges which can quickly mount up, the downside is that they cost you a bit more initially on the initial spread cost when you open the contract. I haven't done the maths however I am told by IG  that the breakeven is approx 11 days. Therefore if you intend to hold for longer than 11 days then a forward may be for you.

Again be careful as the price could well drop sharply if the Saudis & Russians cant make a deal this week. The rut could last quite a bit longer, but interestingly everyone is losing right now USA-Saudi-Russia.

They must do a deal or bleed all their state savings away.

Good Luck!


Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
    • Total Posts
    • Total Members
    • Most Online
      10/06/21 10:53

    Newest Member
    Joined 01/12/23 09:35
  • Posts

    • Gold price and natural gas price consolidate, but WTI comes under fresh pressure It is a mixed start to the month for commodity prices; gold and natural gas are relatively quiet, while oil prices have fallen after an OPEC production cut failed to meet expectations. Source: Bloomberg  Chris Beauchamp | Chief Market Analyst, London | Publication date: Friday 01 December 2023 12:22 Gold price rally stalls The price seems to have topped out for now, though a short-term bearish view would likely need a close back below $2000 to suggest another test of rising support. On the upside, the $2060 level remains as the key area to watch in the short-term, along with the $2075/$2080 area that has marked gold’s highs since 2020. Source: ProRealTime WTI falls after OPEC news OPEC’s production cuts were not enough, it seems to deliver a sustained bounce in oil prices. Instead, Thursday saw the price push briefly above the 200-day simple moving average (SMA), before dropping back again. This now means we wait to see if recent support around $72 could be tested, with a move below this creating a lower low. Source: ProRealTime Natural Gas holds above 200-day MA Here the price has managed to stabilise around the 200-day SMA, and a close back above 2900 might suggest a test of recent trendline resistance. If the price can claw its way back above 3000, buyers might emerge once again. Alternately, 2640 and 2540 become the next short-term targets to the downside. Source: ProRealTime
    • DCA is my long term investment strategy. As for copy trading, i was using Bybit and Bitget initially but switched completely to the latter cex cos it gives me more win rates. Its prolly because they have more elite traders than the former yah.
    • I would say Pele remains the undisputable Greatest Of All Time yah.
  • Create New...