Typically, no one pays much attention to trading oil, but now it has become the hottest topic in the market. This is due to the Hormuz Strait crisis that occurred a few months ago, which is considered the biggest energy crisis since the 1970s.

At that time, WTI and Brent oil prices surged over 20% in a single day because the Hormuz Strait, which accounts for 31% of the world's oil transportation route, was blocked. Goldman Sachs predicts that if the blockade continues for five weeks, prices could break $100-150 per barrel. Meanwhile, RBC Capital Markets says this is the worst energy shock since the 1970s.

So, if we want to trade oil profitably during such times, what should we do? There are several methods depending on your capital and risk tolerance.

The first method is CFDs or Contract for Difference, which are very popular among retail traders wanting to trade oil. CFDs allow you to speculate on price direction without owning the actual oil, enabling profits from both rising and falling markets. The symbols are USOIL (WTI) and UKOIL (Brent). The advantage is high leverage, small capital requirements but large control over volume, 24-hour trading. The downside is that volatility of 25-30% per day during this period makes risk very high; you might get Stop Lossed out before the market moves in your expected direction.

The second method is oil ETFs, such as USO or BNO. They carry lower risk than CFDs because they have no leverage, low fees, and are easy to trade. Suitable for long-term investment, but profit opportunities are more limited.

The third method is Futures, which are contracts to buy and sell oil at a predetermined price. They have high leverage, good liquidity, but expiration dates and very high volatility. On March 9, trading volume hit a record 954,254 contracts. Futures are suitable only for professionals.

The fourth method is investing in oil stocks, such as PTT or PTTEP. Their stock prices follow oil prices, are easy to trade through regular brokers, have no expiration date, and pay dividends. However, stock prices may not move directly with oil.

The fifth method is buying physical oil, but for retail investors, this is almost impossible due to the need for hundreds of millions of baht in capital, logistics issues, storage, and regulations.

The oil market right now depends on many factors. The US stance toward Iran greatly influences prices. OPEC+ policies and production capacity are also crucial. Demand from Asia—especially China, India, Japan, and South Korea, which receive 70% of their oil from the Hormuz Strait—along with dollar exchange rates and EIA oil stock data, also impact the market.

For those interested in forex or forex trading in the oil market, the key advice is to manage risk strictly: set Stop Loss on every order, reduce position sizes due to abnormal volatility, monitor diplomatic news 24/7, avoid using maximum leverage, and choose well-regulated brokers. The current oil market is full of opportunities but also fraught with risks.