How to invest in Oil?

mike22 · 13 February 2009 at 7:54PM

What are the ways to invest in Oil?

jon3001 · 13 February 2009 at 7:56PM

Buy an ETC to get exposure to commodity futures.
http://www.etfsecurities.com/csl/classic/etfs_crude_oil.asp

Stavros_3 · 13 February 2009 at 9:56PM

mike22 wrote: »

What are the ways to invest in Oil?

Ivade Iran

maxi_isa · 13 February 2009 at 10:46PM

Buy BP shares - they are historically cheap and yield about 7% pa.
Long term the price of oil will be high and BP shares will benefit.

Californication · 13 February 2009 at 10:58PM

'Unprecedented' inflows into oil ETFs

Roll-yield losses, redux

How contango affects oil ETFs

--C

trenchwars · 14 February 2009 at 11:38AM

Spread betting is another possibility.

mike22 · 14 February 2009 at 12:11PM

trenchwars wrote: »

Spread betting is another possibility.

Isn't spread betting more risky than buying the actual shares?

tradetime · 14 February 2009 at 12:49PM

Stavros wrote: »

Ivade Iran

That's actually looking like a pretty pricey way

tradetime · 14 February 2009 at 12:53PM

Californication wrote: »

'Unprecedented' inflows into oil ETFs

Roll-yield losses, redux

How contango affects oil ETFs

--C

Agreed, you need to be very selective, contango is seriously damaging to oil trades at the moment. The absolute best way at the moment, seems to be to rent storage, buy the front month contract and sell out a later contract. Not applicable to most of us though. Stay away from any product that is trading the front month contract, unless you are a short term trader.

withnell · 14 February 2009 at 1:56PM

mike22 wrote: »

Isn't spread betting more risky than buying the actual shares?

In that if you spread bet 1000, you can lose a lot more when the price goes down than if you'd invested 1000 directly in oil

The advantage is that you can do a 100 spread bet, and if the price goes up you get the gain as if you'd invested 1000