Monday, February 19th 2018

Question

How to invest in crude oil?

Interesting Question?   (5)   (9)



Answers (1)

12th Nov 2009 by Amelia Timbers

Oil and energy are very popular places for investment, though volatile investments to hold. You could invest in oil companies directly by purchasing the stock of an energy company that does a lot of extraction and sales, such as Conoco Phillips (COP), BP (BP), Chevron (CVX), Exxon (XOM), Royal Dutch (RDS.A), and similar. You can also buy an energy or oil ETF. An ETF, or exchange traded fund, is like purchasing a mutual fund that invests in an index or an industry- you get a little of all the industry leaders. ETFs are meant to be fully diversified and only do as well as the sector or index they are tracking. You could also purchase shares of a mutual fund whose portfolio is only energy/ oil assets. A final way would be to purchase crude oil yourself, and sell it when at a higher price. This is technically an investment, but fraught with barriers to entry. The better option is to buy stocks or ETFs and invest vicariously.

Like This Answer?   (1)   (0)
This answer is the subjective opinion of the writer and not of FinancialAdvisory.com



12th Nov 2009 In Commodities 1 Answers | 453 Views
Subjects: crude oil, invest in crude oil,

Answer This Question / Give Your Opinion
How to invest in crude oil?


Answer: *

What country is this answer relevent to? *
Your Name: *

Enter Verification Number: *


Give Your Opinion
What is a good loan?
Share a simple answer to help inform others:
Specific to any country?
First name / Alias

• Your answer will be posted here:
What is a good loan?
Unanswered Questions in Commodities
Who are the biggest oil companies in the world?
How to trade commodities?
What are precious metals?
How risky is commodity trading?
What are foreign exchange derivatives?

Answered Questions in Commodities
What are the advantages of investing in gold?
How to invest in copper?
When did oil become a traded commodity?
How to trade commodities online?
What are the different types of commodities?
Ask A Question
Get opinions on what you want to know:
Specific to any country?