Commodities exchanges usually trade futures contracts on commodities, for example, in a certain month, A farmer raising corn can sell a future contract on his corn, which will not be harvested for several months, and guarantee the price he will be paid when he delivers; a breakfast cereal producer buys the contract now and guarantees the price will not go up when it is delivered. This protects the farmer from price drops and the buyer from price rises.
Oil trading is performed in the same way as FX or Foreign Currencies Trading
Oil Is King – More people trade oil than any other commodity. Its importance in the world and demand is increasing due to China and India becoming increasingly important to world economy. You can trade oil futures using options and commodities from anywhere there is a computer with internet service.