Can trading crude oil be profitable?

<p id="isPasted">Yes, trading crude oil can be profitable for informed and disciplined traders due to its high liquidity and significant price volatility, which creates frequent trading opportunities. However, the market is complex and success is not guaranteed, as most retail traders face substantial risks.&nbsp;</p><p>Crude oil prices are heavily influenced by global supply and demand dynamics, geopolitical events, and economic conditions. For instance, in 2025, prices have been range-bound between approximately $60–$70 per barrel, driven by an interplay of oversupply concerns and regional conflicts. As of December 12, 2025, the WTI crude oil futures price is around $58.02 per barrel.&nbsp;</p><p id="isPasted"><strong>Factors Contributing to Profitability and Risk</strong></p><ul><li>Volatility: Crude oil's price swings are frequent and can be substantial, offering ample opportunities for profit from short-term strategies like day trading and swing trading.</li><li>Global Influences: Staying informed about international developments, such as OPEC+ decisions, U.S. inventory data (released weekly), and economic trends in major consumers like India and China, is crucial for making informed decisions.</li><li>Leverage: Trading is typically done through futures contracts, which offer high leverage, potentially amplifying returns from even small price movements. However, this also magnifies losses, a primary risk factor for individual traders.</li><li>High Failure Rate: Similar to other derivatives markets, a significant majority of retail traders in the F&amp;O segment (which includes crude oil futures) incur net losses, with statistics indicating a failure rate of 70% to 90%. </li></ul>