Investing in oil

neil324

Whats the best way to invest in oil. Buy shares in companies linked to the industry inside an ISA or how can you invest in the physical stuff.

purch

There are many ETF's that Track various Indicis linked to Oil....not actual physical Oil but tracking Futures derived from Physical delivery prices.

ETFSecurities is one provider.

They have ETF's linked to the DJ-AIG Petroleum Index as well as Brent Crude or West Texas from Spot out to 3 years, plus Short ETF's and leveraged one's.

http://www.etfsecurities.com/en/welcome.asp

wagdog

purch wrote: »

There are many ETF's that Track various Indicis linked to Oil....not actual physical Oil but tracking Futures derived from Physical delivery prices.

If the OP really wants the physical stuff, then be prepared to provide storage for it and to then arrange for delivery.

purch wrote: »

They have ETF's linked to the DJ-AIG Petroleum Index as well as Brent Crude or West Texas from Spot out to 3 years, plus Short ETF's and leveraged one's

Word of warning though. These are derivative products and the counterparty involved in these commodity trackers is none other than the now infamous AIG which is basically on life support via multi-billion dollar loans from the Fed.

PS: Treat leveraged ETFs with extreme care, especially if you don't know how they work.

purch

Treat leveraged ETFs with extreme care, especially if you don't know how they work

Treat ALL COMMODITY investing with extreme care.

Commodity's do not trade or move in similar ways to main stream markets, as they are driven by technicals far more than any other markets.

StevieJ

neil324 wrote: »

Whats the best way to invest in oil. Buy shares in companies linked to the industry inside an ISA or how can you invest in the physical stuff.

Worth a look.

http://www.h-l.co.uk/funds/security_details/sedol/B01YQF7

PasturesNew

I worked in a serviced office unit some years back and one of the tenants bought/sold actual oil.

He'd buy a container of it when it left the port - and had to sell it at a profit before it docked. So he never had any storage issues.

Then one day it was the end of the day and he was quite frantic. He needed to urgently find somebody to buy his oil because the ship was docking!

He was tied up with some Russian bunch up in Irkutsk, Siberia.

snarffie

So from this thread, there is no simple 'index tracker' style method of tracking the price of oil within an isa wrapper? Is that right?

Count_Dante

snarffie wrote: »

So from this thread, there is no simple 'index tracker' style method of tracking the price of oil within an isa wrapper? Is that right?

You could use spread betting, but it is really not for long term investing. Some of the ETFs seem interesting.