Oil Price Rally Continues: Where to Trade WTI & Brent Crude Oil Before the Next Breakout
Today's Oil Market Performance
Global crude oil prices surged sharply in early Asian trading on 20 July, extending last week's gains as geopolitical tensions in the Middle East intensified. WTI crude jumped more than 2% to around $84.60 per barrel, while Brent crude climbed above $91, its highest level in weeks. The rally has renewed investor interest in energy markets, with many traders now asking whether oil is preparing for another major breakout.
Why Is Oil Rising?
1. Escalating US-Iran Conflict Raises Supply Risks
The biggest catalyst behind today's rally is the continued escalation between the United States and Iran. Military strikes have intensified, while Iran has threatened to restrict energy shipments through the Strait of Hormuz—one of the world's most important oil transit routes.
Around 20% of global oil exports pass through the Strait of Hormuz. Any disruption to shipping immediately raises concerns about global crude supply, prompting traders to price in a geopolitical risk premium. Recent reports also indicate that tanker traffic through the strait has slowed significantly as security risks increase.
2. Brent Crude Breaks Above $90
Brent crude futures have now moved back above $90 per barrel, a level closely watched by technical traders and institutional investors. The breakout reflects growing expectations that supply disruptions could become more severe if tensions continue to escalate.
Meanwhile, WTI crude has gained more than 15% over the past week, making this one of its strongest weekly rallies since earlier this year.
3. Markets Are Pricing Higher Shipping and Insurance Costs
Even without a complete disruption to oil exports, rising military tensions have already pushed up tanker insurance premiums and shipping costs across the Gulf region.
Higher transportation costs increase the delivered price of crude oil, tightening global supply conditions and supporting higher benchmark prices for both WTI and Brent. Analysts note that prolonged disruptions could add several dollars per barrel to global oil prices.
4. Tight Global Inventories Amplify the Rally
The geopolitical backdrop is being reinforced by already tight global oil inventories. Analysts note that commercial crude stockpiles remain near multi-year lows, leaving the market more vulnerable to supply shocks than in previous years.
With inventories constrained, any unexpected disruption to Middle Eastern exports has a greater impact on prices because there is less buffer available to offset lost supply.
What Could Happen Next?
The next direction for oil prices will largely depend on developments in the Middle East.
If shipping through the Strait of Hormuz remains constrained or military tensions escalate further, Brent crude could challenge $95–100 per barrel, while WTI may continue advancing toward the upper-$80s. Conversely, any signs of diplomatic progress or improved tanker flows could trigger profit-taking after the recent sharp rally.
“Trade Crude Oil with an ASIC-regulated broker. Fast AUD funding via PayID. ”
Where to Trade Oil in Australia
Australian investors can trade crude oil through several financial instruments, including oil CFDs, futures, ETFs, and energy company shares. For most retail traders, oil CFDs are the most accessible option because they allow you to speculate on both rising and falling prices without owning physical barrels of oil.
The two most widely traded benchmarks are:
WTI (West Texas Intermediate) – the U.S. benchmark, traded under the symbol USOIL
Brent Crude – the international benchmark, traded under the symbol UKOIL
Oil CFDs are particularly popular because they offer:
Trade both long and short
Access to WTI and Brent from one account
Lower capital requirements than oil futures
Extended trading hours
Built-in leverage (subject to ASIC regulations)
Fast execution during major market events
💡 When choosing where to trade oil, look for a broker that offers competitive spreads, strong regulation, reliable execution, and an intuitive trading platform. For Australian traders, ASIC regulation is an important factor when evaluating broker safety.
Best Oil Brokers in Australia (2026)
These brokers provide access to the world's most actively traded oil benchmarks and are suitable for different trading styles—from beginners looking for a simple CFD platform to experienced traders seeking futures and advanced charting tools.
Whether you're looking to trade short-term price swings driven by geopolitical events or capitalize on longer-term oil trends, Mitrade provides a straightforward way to access the global energy markets without the complexity of futures contracts.
📌 Tip: Oil prices are highly sensitive to OPEC+ production decisions, U.S. inventory reports, geopolitical tensions, and global economic data. Before opening a position, always monitor the latest news and use appropriate risk management tools such as stop-loss orders.
“Trade Crude Oil with an ASIC-regulated broker. Fast AUD funding via PayID. ”
Oil Price Forecast: Can WTI and Brent Extend Their Rally?
Oil remains one of the most volatile asset classes, with prices currently being driven by geopolitical developments rather than changes in demand alone. After WTI climbed above $84 and Brent reclaimed the $90 level, traders are closely watching whether the rally can continue in the coming days.
Bullish Scenario
If tensions in the Middle East continue to escalate and shipping through the Strait of Hormuz remains disrupted, crude oil could extend its gains.
Key upside levels to watch:
A further decline in tanker traffic, tighter global inventories, or additional sanctions could push oil prices even higher over the coming weeks.
Bearish Scenario
Despite the strong momentum, oil prices remain vulnerable to sharp pullbacks if geopolitical tensions ease.
Potential downside catalysts include:
A ceasefire or diplomatic breakthrough between the US and Iran
Increased production from OPEC+
Larger-than-expected U.S. crude inventories
Slowing global economic growth reducing fuel demand
In that scenario, WTI could retreat toward $80–82, while Brent may revisit the $86–88 range. Longer-term, some investment banks still expect additional supply growth to cap oil prices once geopolitical risk premiums fade.
How to Trade Oil CFDs with Mitrade
If you want to benefit from oil price movements without buying physical crude or trading complex futures contracts, oil CFDs offer a flexible alternative.
With Mitrade, Australian traders can speculate on both WTI (USOIL) and Brent (UKOIL) markets from a single trading account.
Step 1: Open a Trading Account: Create your Mitrade account online and complete the verification process.
Step 2: Fund Your Account: Deposit funds using your preferred payment method.
Step 3: Search for Oil Markets: Choose either:
WTI Crude (USOIL)
Brent Crude (UKOIL)
Step 4: Analyse the Market: Use Mitrade's built-in charts and technical indicators to identify trading opportunities based on support, resistance, trendlines and momentum.
Step 5: Place Your Trade: Decide whether oil prices are likely to:
Rise → Open a Buy (Long) position.
Fall → Open a Sell (Short) position.
Set your preferred position size together with stop-loss and take-profit levels before executing the trade.
Why Trade Oil CFDs with Mitrade?
Commission-free CFD trading
Access to both WTI and Brent crude
Competitive spreads
Long and short trading opportunities
User-friendly mobile and desktop platforms
Free demo account for beginners
Real-time market analysis and price alerts
Because CFDs are leveraged products, they can amplify both profits and losses. Always use appropriate risk management and only trade with capital you can afford to risk.
1. Is now a good time to trade oil?
Oil remains highly volatile due to geopolitical tensions, OPEC+ policy decisions and global economic data. Active traders may find increased volatility creates more trading opportunities, but it also raises risk.
2. What is the difference between WTI and Brent crude?
WTI (West Texas Intermediate) is the primary U.S. oil benchmark, while Brent is the international benchmark used to price most globally traded crude oil. Brent generally trades at a premium because of its global relevance and transportation dynamics.
3. Can Australians trade oil CFDs?
Yes. Australian investors can trade WTI and Brent crude oil CFDs through ASIC-regulated CFD brokers such as Mitrade, allowing them to speculate on both rising and falling oil prices without owning physical oil.
4. What affects oil prices the most?
The main drivers include:
Middle East geopolitical tensions
OPEC+ production decisions
U.S. crude inventory reports
Global economic growth
U.S. Dollar strength
Supply disruptions and extreme weather
* The content presented above, whether from a third party or not, is considered as general advice only. This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.
