how does crude oil trading work


Ive searched everywhere online but I just dont understand how crude oil is traded and what procedures are taken, how the broker gets the percentage and how that can become a recurrent revenue.

Btw not trading securities or stocks, actual physical barrels of oil sold to refineries from government owned fields in unsanctioned countries.

In: 3

This is what commodities exchanges are for…they’re like stock exchanges, only for buying & selling stuff…oil, wheat, sugar, metal, etc.

The exchanges provides standardized contracts, terms, enforcement, etc. and a place for buyers & sellers to meet. Just like with stocks, there are brokers who can trade on behalf of other people who actually own the commodities.