Monday, December 11th 2017

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How to invest in crude oil?

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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.

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12th Nov 2009 In Commodities 1 Answers | 438 Views
Subjects: crude oil, invest in crude oil,

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