How to spread bet rising oil prices

Oil is on the way up again. And for commodity spread betters, that represents an opportunity to make money. But before you trade, there are three things you need to do. Tim Bennett explains what they are.

The price of oil is on the way up again. It is currently sitting around $119 per barrel (Brent Crude) having jumped on news that Saudi Arabia failed to convince OPEC members to raise production targets. For commodity spread betters, the oil price represents an opportunity to make money. Here are three things you need to do first.

First off, get to know your market. There are many factors that affect supply and demand and therefore the price of oil. Politics is one of the big ones: the OPEC cartel of oil-producing countries can have a big impact on the price by altering its commitment to supply oil. So anyone spread betting this market needs to be on top of the timing and likely impact of OPEC's announcements.

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Tim graduated with a history degree from Cambridge University in 1989 and, after a year of travelling, joined the financial services firm Ernst and Young in 1990, qualifying as a chartered accountant in 1994.

He then moved into financial markets training, designing and running a variety of courses at graduate level and beyond for a range of organisations including the Securities and Investment Institute and UBS. He joined MoneyWeek in 2007.