Despite the energy transition from fossil fuels to renewable alternatives, crude oil is a pillar of the global economy and will remain so for decades to come. Exploration will decrease, with demand unlikely to falter, but the global economy may have experienced peak oil demand. It makes crude oil trading an appealing asset. Keep reading to learn about the best time to trade crude oil and how it can help you boost profitability.
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An Overview of When to Trade Oil
West Texas Crude, the US benchmark, opens for trading Sunday through Friday at 22:00 (GMT) and closes Monday through Thursday at 23:59 (GMT) and Friday at 23:57 (GMT). Brent Crude oil, the international benchmark, also opens on Sunday at 22:00 (GMT) and closes on Monday at 23:59 (GMT), but the Tuesday through Friday opening times are 24:00 (GMT) with identical closing times as West Texas Crude oil markets.
Noteworthy:
Crude oil brokers can have slightly different opening and closing times based on their trading infrastructure
The Basics of Crude Oil Trading Hours
Trading during the three major trading sessions can yield improved trading opportunities and profitability.
Here are the three primary crude oil trading sessions:
Asian Trading Hours
The Asian trading session ranks among the least volatile despite including the major oil consumers of China, India, and Japan and core trading hubs in Hong Kong and Singapore. Dubai crude is one of the most traded contracts during the Asian session.
European Trading Hours
Volatility picks up during the European trading hours. These include the London trading session, a major crude oil trading hub, where Brent crude is the center of attention. Brent crude is the international standard for crude oil.
North American Trading Hours
Trading focuses on West Texas Crude oil, the standard for the US, and includes trading on the New York Mercantile Exchange (NYMEX). It results in the highest liquidity and most substantial price movements for West Texas crude oil.
Overlapping Sessions
Many traders consider the London-New York overlap session the best time to trade West Texas crude oil and Brent crude oil due to the liquidity levels, release of market-moving fundamental events, and magnitude of price action movements. The session begins Monday through Friday at 12:00 (GMT) and ends Monday through Friday at 16:00 (GMT), but it can be extended until 17:00 (GMT).
What Are the Trading Times of Crude Oil Markets?
While the best time to trade crude oil depends on the trader’s preferences, the below times offer improved liquidity.
Asian Trading Session
Local Time | GMT Time | |
Open | Monday 08:00 | Sunday 22:00 |
Close | Monday 18:00 | Monday 09:00 |
European Trading Session
Local Time | GMT Time | |
Open | Monday 08:00 | Monday 07:00 |
Close | Monday 17:30 | Monday 16:30 |
North American Trading Session
Local Time | GMT Time | |
Open | Monday 08:00 | Monday 12:00 |
Close | Monday 16:00 | Monday 20:00 |
Overlapping Sessions
When two markets operate simultaneously, an overlapping session occurs, which increases liquidity and often creates more trading opportunities with lower trading fees.
Sydney - Tokyo Overlapping Trading Session
GMT Start Time | GMT End Time |
Sunday 24:00 | Monday 06:00 |
Tokyo - London Overlapping Forex Trading Session
GMT Start Time | GMT End Time |
Monday 07:00 | Monday 09:00 |
London - New York Overlapping Forex Trading Session
GMT Start Time | GMT End Time |
Monday 12:00 | Monday 16:00 |
When Is the Best Time to Trade Crude Oil?
The best time to trade crude oil is when traders decide to trade according to their strategy and crude oil assets. From a purely technical perspective, trading during the official trading sessions of exchanges that trade the desired crude oil contract adds liquidity and lower trading fees.
What Are the Different Ways to Trade Crude Oil?
The best way to trade crude oil is via Contracts for Difference (CFDs) on numerous crude oil assets.
Here are the most common forms of crude oil trading:
- Spot trading, enabling traders to trade current market prices
- Futures trading, enabling traders to trade based on expected future prices
- Options trading, enabling traders to speculate on oil prices
Bottom Line
The best time to trade crude oil depends on the crude oil asset and the trader’s trading strategy, as crude oil trades almost 24/5.
