Investing in oil

ffacoffipawb

Are there any OEICS that specifically invest in oil?

I have JPM Natural Resources but that has lots of other stuff in it.

There is CRUD but that is an ETF.

Thanks

bowlhead99

You can buy an ETF or ETC, where your holding in the investment vehicle represents underlying holdings of oil or tradeable contracts to buy oil.

You can buy a fund that owns shares or debt instruments in companies that operate in oil exploration, oil production or oilfield services. It may own shares or bonds in companies in similar sectors too.

From what you're saying, you don't want either of those things. So what do you mean by an open ended fund that 'specifically invests in oil'?  An OEIC which owns oil contracts and has to sell them or buy some more each and every time someone wants to subscribe into or redeem out of the fund? Or a traditional equity investment fund which restricts itself to the oil sector?

Ceme3000

Oil futures prices can move quite quickly. Why would you consider an OEICS that can take a day to sell?  

mark55man

Oil has not been a happy place to be recently, even prior to COVID.  As a recovery play - possibly but I would be waiting to see how demand and Pandemic plays out.  

ffacoffipawb

Ceme3000 said:

Oil futures prices can move quite quickly. Why would you consider an OEICS that can take a day to sell?  

Because it is meant forva long term hold, not short term like CRUD or LOIL (leveraged) should be held for.

AnotherJoe

mark88man said:

Oil has not been a happy place to be recently, even prior to COVID.  As a recovery play - possibly but I would be waiting to see how demand and Pandemic plays out.  

Oil is Dead Man Walking.
BP's recent write of $17.5Bn is just the start. A lot of the value in these companies is stranded assets. 

webjaved

I see Oil like Gold, it will fluctuate, but when the inevitable drop comes, it will drop really hard. I wouldn't lump large amounts on Oil.

ffacoffipawb

AnotherJoe said:

mark88man said:

Oil has not been a happy place to be recently, even prior to COVID.  As a recovery play - possibly but I would be waiting to see how demand and Pandemic plays out.  

Oil is Dead Man Walking.
BP's recent write of $17.5Bn is just the start. A lot of the value in these companies is stranded assets. 

webjaved said:

I see Oil like Gold, it will fluctuate, but when the inevitable drop comes, it will drop really hard. I wouldn't lump large amounts on Oil.

Ok, perhaps some gold then, i will look into it.