Thursday, May 25th 2017

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 | 388 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 are the different types of Westpac home loans?
Share a simple answer to help inform others:
Specific to any country?
First name / Alias

• Your answer will be posted here:
What are the different types of Westpac home loans?
Unanswered Questions in Commodities
What are foreign exchange derivatives?
How risky is commodity trading?
What is the Crude Curve?
Who are the biggest oil companies in the world?
What are precious metals?

Answered Questions in Commodities
How rare is palladium?
What are the advantages of investing in silver?
How to invest in silver?
Where to buy commodities?
What commodities to invest in?
Ask A Question
Get opinions on what you want to know:
Specific to any country?