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Is there any efficient way to invest in oil? While a prolonged lock down is definitely a possibility, it's also quite possible that the market will recover whi

Is there any efficient way to invest in oil? While a prolonged lock down is definitely a possibility, it's also quite possible that the market will recover which should bring the price per barrel closer to normal range. Edit: Really surprised by being downvoted for asking a question

_delirium 7y ago
The traditional way is to invest in large oil producers (XOM, BP, etc.), whose stocks are pretty strongly correlated with oil prices. But that's also placing a secondary bet that they won't go bankrupt before oil goes back up. There are also ETFs that try to directly proxy oil prices by holding and continually rolling over near-dated oil futures. USO is the biggest of those. They have some technical issues tracking oil prices though, especially for long-term buy-and-hold strategies: https://www.investopedia.com/articles/markets/081116/uso-good-way-invest-oil-uso.asp https://www.investopedia.com/articles/markets/081116/uso-goo...
mikhailfranco 7y ago
Try the ERX ETF when it drops back to recent lows $6-7, but only if you are very brave, have money you can afford to lose, but want a chance to 20x your stake: https://finance.yahoo.com/quote/ERX https://finance.yahoo.com/quote/ERX
- tomerico 7y ago
  Wow. It’s crazy how much it went down from this! Definitely “money that I can afford to lose” type of investment!
audiometry 7y ago
Don’t touch any oil etf, especially any leveraged etf. Even an unelevered etf, like the USO, will destroy your investment. Every month the USO rolls the position from the month 1 contract to month 2. We are in a deeply contango market and will remain so for a while, so every month you’re going to lose 2-4$ per bbl. So even if oil appreciates several dollars, you still lose. Oil etf’s are toxic waste.
raincom 7y ago
If this market crashes, why even go near oil and oil producers? Lots of good opportunities elsewhere. Still if you want to bet, watch out for CVX and XOM.

_delirium 7y ago

The traditional way is to invest in large oil producers (XOM, BP, etc.), whose stocks are pretty strongly correlated with oil prices. But that's also placing a secondary bet that they won't go bankrupt before oil goes back up. There are also ETFs that try to directly proxy oil prices by holding and continually rolling over near-dated oil futures. USO is the biggest of those. They have some technical issues tracking oil prices though, especially for long-term buy-and-hold strategies: https://www.investopedia.com/articles/markets/081116/uso-good-way-invest-oil-uso.asp https://www.investopedia.com/articles/markets/081116/uso-goo...

mikhailfranco 7y ago

Try the ERX ETF when it drops back to recent lows $6-7, but only if you are very brave, have money you can afford to lose, but want a chance to 20x your stake: https://finance.yahoo.com/quote/ERX https://finance.yahoo.com/quote/ERX

tomerico 7y ago
Wow. It’s crazy how much it went down from this! Definitely “money that I can afford to lose” type of investment!

audiometry 7y ago

Don’t touch any oil etf, especially any leveraged etf. Even an unelevered etf, like the USO, will destroy your investment. Every month the USO rolls the position from the month 1 contract to month 2. We are in a deeply contango market and will remain so for a while, so every month you’re going to lose 2-4$ per bbl. So even if oil appreciates several dollars, you still lose. Oil etf’s are toxic waste.

raincom 7y ago

If this market crashes, why even go near oil and oil producers? Lots of good opportunities elsewhere. Still if you want to bet, watch out for CVX and XOM.