5 Reasons to Trade Oil in 2026

Thinking about which market to use this year to pass your Fintokei trading challenge?
Many indicators suggest that oil could be a very interesting instrument in 2026. Let’s take a look at 5 reasons why you should give oil a chance this year. Oil can easily be described as “black gold.” It is essentially the blood of the global economy. As a result, it is one of the most strategic commodities in international politics and industry. And even though we are currently living in an era of energy transition and trying to reduce our dependence on oil, the numbers speak clearly – the oil market remains one of the largest and most important markets in the world.

At the same time, oil is also one of the most popular instruments among online traders. It reacts very well to fundamentals and can be highly volatile. That means that if you know which events from the economic calendar to watch, passing your challenge doesn’t have to take long. So let’s take a closer look at 5 reasons why oil trading in 2026 deserves your attention.

Before we start: which types of oil can you trade?

It’s useful to clarify which types of oil you’ll encounter. For you as a trader, the key distinction is between WTI (West Texas Intermediate) and Brent. Both are available on Fintokei trading platforms.

Brent

A light, sweet crude oil originating from the North Sea. Brent serves as the price benchmark for oil from Europe, Africa, and the Middle East.

WTI (West Texas Intermediate)
A collective term and price benchmark for oil produced in North America.

What about the price?

There is usually a slight difference. A barrel of Brent is typically more expensive than a barrel of WTI, even though WTI is of slightly higher quality.

Why? WTI is easier to extract, so its price does not include such high production costs. Brent, on the other hand, may be of lower quality, but extracting it from the bottom of the North Sea using offshore oil rigs is far from simple, and that complexity is reflected in the price.

Why trade oil in 2026?

1. The global economy depends on oil = a highly liquid market

Humanity is doing everything it can to reduce its dependence on oil. However, this process will still take time. Oil is not only used to produce fuel for combustion engines – it is also essential for producing plastics, pharmaceuticals, and key chemical products.

What does this mean for you as a trader?

The oil market is among the most liquid markets in the world. Your positions are therefore very likely to be executed at the price you expect, with minimal slippage. In short, everything works as it should.

2. High volatility as an opportunity for profit

You won’t find many markets more volatile than oil. Oil prices react very sharply to a wide range of factors, including:

Geopolitical events
Wars, sanctions, attacks on oil facilities – all of these can cause oil charts to move by dozens of pips in a single day. If you correctly identify the direction, you’re already halfway there. Understanding risk-on / risk-off sentiment, or overall market mood, can help significantly.

As an example, we can look at the recent rise in tensions around Iran. Oil prices increased sharply in June 2025 and then again at the beginning of 2026. This clearly shows that following global events can pay off when trading oil.

OPEC decisions
We’ll discuss this cartel in more detail shortly, but for now, it’s enough to know that every OPEC decision has an almost immediate impact on the oil market.

As an example, consider the situation in early May 2025, when OPEC surprised markets by increasing production by 411,000 barrels per day. The market was not prepared for such a move, and oil prices dropped immediately.

Economic cycles
When major economies (such as China) grow, which you can observe through rising GDP, they require more oil to function (industry, transportation, logistics). This increases demand and leads to higher oil prices.

3. One of the cheapest markets at Fintokei

At Fintokei, oil trading comes with zero commissions, just like crypto and stock indices. This means that, unlike Forex (where commissions can reach $6 per lot), you pay nothing to open oil positions.

This is good news not only for scalpers who place trade after trade. Thanks to zero commissions, more capital remains available in your account. And the more capital you have, the more trading opportunities you can take – increasing your chances of passing the challenge and withdrawing a payout.

Oil also offers solid leverage, which, combined with high volatility, can deliver very strong results. Just remember that leverage multiplies losses as well, so never enter a trade without confirmation. You can use confirmations such as a fair value gap or other candlestick formations.

Oil leverage at Fintokei:

4. Strong predictability and excellent reaction to fundamentals

If you want oil to become your “cash cow,” you need to learn how to read the economic calendar. Why? Because a large amount of data related to oil is published regularly, and oil often reacts immediately.

This is a major difference compared to stock markets, where price movements often happen on rumors, and when the official data is released, the market barely reacts because it has already priced everything in.

Traders should definitely monitor US crude oil inventories, which can significantly move the market. The chart below shows the situation from October 29, 2025, when US oil inventories fell far more than expected. The result was a short-term price increase.

Key fundamentals to watch when trading oil:

OPEC meetings
OPEC consists of 13 countries from the Middle East, Africa, and South America. Together, they control around 40% of global oil production and 80% of proven oil reserves. When they reach a joint decision, the impact on oil prices is almost immediate. OPEC meetings take place at least twice a year and are essential to monitor if you trade oil.

US oil inventories (EIA report)
Published every Wednesday, these data strongly influence oil prices. Unlike OPEC, the EIA report focuses on oil inventories held by US companies. How to read it? Simply put, if inventories rise more than expected, it indicates weaker demand and usually leads to falling oil prices.

Active oil rigs
Data from Baker Hughes show trends in future US oil production. A larger-than-expected decline in active rigs can signal rising oil prices. Once again, supply and demand apply: lower production means lower supply, while demand remains unchanged.

Weather
Yes, seriously. But we’re not talking about light rain or clear skies. We mean hurricane season in the US, which runs from June 1 to November 30. Hurricanes can damage oil rigs and shut them down for weeks. Reduced production leads to higher oil prices. Want to go deep into oil trading? Study hurricane paths.

Fintokei advantage: unlimited trading during news

That’s right. On all Fintokei challenges and accounts, you can trade before, during, and after the release of economic news. This gives you full freedom to handle oil volatility your way. Just make sure it doesn’t handle you instead 😉

5. A wide range of proven strategies

Oil is an excellent instrument for testing different trading styles. You can trade pure technical analysis, build a trading bot, or look at the market through Smart Money Concepts. At Fintokei, you have countless ways to conquer the markets.

The key is to have a trading plan and stick to it. Without one, trading can easily turn into gambling.