How To Buy Oil Futures In The US

The price of oil has experienced some wild swings lately on the back of the conflict in the Middle East. This had led to increased interest in oil futures and other oil-related financial instruments. Interested in trading oil futures but not sure where to start? Here’s a concise guide to buying oil futures in the US in 2025.

What are oil futures?

Futures are financial contracts in which two parties agree to exchange a financial asset (e.g. an index or a commodity) at a fixed price and time in the future. They can be an effective way to gain exposure to a specific asset or asset class because you only have to pay a fraction of the full price of the contract upfront (what you pay upfront is known as “margin”).

With oil futures, you agree to buy or sell a specific quantity of crude oil at a predetermined price on a designated future date, depending on your view of where oil prices are heading. If your view turns out to be correct, you will realize a profit as the oil price moves in your anticipated direction.

Oil futures are highly standardized by exchanges such as the New York Mercantile Exchange (NYMEX) and the Intercontinental Exchange (ICE). This standardization includes the quantity of oil (oil futures are typically 1,000 barrels for a standard contract) and delivery dates.

Note that while futures contracts can involve physical delivery of a commodity, the vast majority of oil futures contracts are cash-settled. This means that at expiration of the contract, instead of actual barrels of oil changing hands, the difference between the agreed-upon futures price and the prevailing spot market price is paid to the relevant party.

Where can you buy oil futures?

There are a number of firms that offer exposure to oil futures today. Some reputable firms include:

• Interactive Brokers – Interactive Brokers access to a range of oil futures, including futures on WTI Crude Oil (symbol: CL) and Micro WTI Crude Oil (symbol: MCL). Micro WTI Crude Oil futures allow for smaller contract sizes, providing a more accessible entry point for traders starting out or those with less capital.
• Plus500 – With Plus500, you can trade a range of different oil futures including WTI Crude Oil, Brent Crude Oil, and Micro WTI Crude Oil. And you start with as little as $100.
• Charles Schwab – With Charles Schwab, you can trade futures on Crude Oil, E-mini Crude Oil, and Micro WTI Crude Oil on the thinkorswim® trading platforms. Charles Schwab also offers a range of educational resources for futures traders, so it can be a good platform for beginners.
• NinjaTrader – NinjaTrader offers access to futures on Crude Oil and Micro Crude Oil. There is no deposit minimum and you can trade via desktop platform, web, or mobile.

How do you trade oil futures?

Trading oil futures is relatively straightforward. Let’s say that you believe that oil prices are going to rise. In this scenario, you would buy a futures contract (or “go long”). If prices were to increase, you could sell the futures contract for a profit.

Alternatively, let’s say that you predict that oil prices are going to fall. In this scenario, you would sell a futures contract (“go short”). If prices were to fall, you would be able to close out the contract for a profit.

What are the risks?

While trading oil futures can be profitable, it also comes with substantial risks. Some of the main risks to be aware of include:

• Price movements – Oil prices are notoriously volatile and can be influenced by a range of factors including geopolitical events, economic data, and weather patterns. Unexpected news can cause prices to swing around wildly, leading to rapid losses for futures traders.
• Leverage risk – With futures, you can often control a large contract value with a relatively small amount of money. This “leverage” can magnify your losses if the market moves in the wrong direction. So, you need to be careful using it and have robust risk management processes in place. Without risk management strategies, you could face large losses (you can lose more than your initial investment).
• Margin calls – If oil prices move in the wrong direction, your broker may issue a “margin call,” requiring you to deposit additional funds into your account to maintain your position. If you don’t meet the margin call, the broker may close your position (potentially at a loss).

How do oil futures compare to oil options?

Oil futures and oil options are both derivative instruments that can be used to speculate on the price of oil. However, they differ in their mechanics and risk profiles. An oil futures contract is a legally binding agreement to buy or sell a specific quantity of crude oil at a predetermined price on a designated future date. By contrast, an oil option contract gives the holder the right, but not the obligation, to buy or sell a specific oil futures contract (or sometimes the physical commodity itself) at a predetermined price on or before a specified expiration date.

Other oil investments

If you’re not so keen on trading futures but still want exposure to oil, there are plenty of other options to consider. These include:

• Oil stocks – Oil stocks such as Chevron, Exxon, BP, and Shell tend to move higher when oil prices are rising. That’s because their profits and cash flows are directly related to oil prices.
• Oil exchange-traded funds (ETFs) – Oil ETFs are funds that track the price of oil or an index of oil stocks. Somes examples of oil ETFs include the United States Oil Fund (USO), the iShares US Oil & Gas Exploration & Production ETF (IEO), and the Vanguard Energy ETF (VDE).
• Oil exchange-traded notes (ETNs) – ETNs do not own an underlying portfolio of assets, and instead are made up of derivative instruments. Some examples include the iPath Series B S&P GSCI Crude Oil Total Return Index ETN (OIL) and the Credit Suisse X-Links Crude Oil Shares Covered Call ETN (USOI).
• Leveraged ETNs – These provide leveraged exposure to oil prices or oil stock prices. An example is the UCO Ultra Bloomberg Crude Oil (UCO), which provides two times (2x) the daily performance of the Bloomberg Commodity Balanced WTI Crude Oil Index.

FAQ

What is the ticker for oil futures?

The symbol for WTI Crude Oil futures – the most actively traded crude oil futures contract – is “CL.” The primary ticker for Brent Crude Oil futures is “B.”

Where are oil futures traded?

WTI Crude Oil futures are traded on the New York Mercantile Exchange (NYMEX). Meanwhile, Brent Crude Oil futures are primarily traded on the Intercontinental Exchange (ICE).

How does margin work with oil futures?

When you trade oil futures, you don’t pay the full value of the contract upfront. Instead, you put down a relatively small amount of money known as “margin.” This margin allows you to control a much larger notional value of oil. For example, you may be able to control $70,000 worth of oil with just $5,000. The benefit of margin is that it can magnify your profits. On the downside, however, it can also magnify your losses.

What factors influence oil prices?

Factors that impact oil prices include:

• Supply and demand – Production levels and global economic growth are major variables here.
• Geopolitical events – Wars, political instability, and sanctions in oil-producing regions can disrupt supply and cause price spikes.
• Weather – Disruptive weather events such as hurricanes can impact oil production and refining capacity.
• Alternative energy developments – Advances in renewable energy can influence long-term demand expectations.