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There are ETFs (exchange-traded funds) called OIL and USO which track the price of oil and oil futures. You can buy them through, e.g., Scottrade, the same way
by mhartl 17y ago
There are ETFs (exchange-traded funds) called OIL and USO which track the price of oil and oil futures. You can buy them through, e.g., Scottrade, the same way you buy stocks. Or you could just buy stock directly in oil companies, which would certainly expose you to the future price of oil.
It may seem like a sure bet that oil prices will rise, but the return would have to compensate you for (a) the opportunity cost and (b) the risk that you're wrong. Peak oil alarmists imply that the current prices don't accurately reflect future scarcity, so they should be able to make a killing in the oil markets and encourage conservation (by making current oil more expensive) at the same time. But if they don't have the confidence to put their money where their mouth is, they really should have the good sense to shut up already.
N.B. I do know some peak oil types who are long oil, and I respect them greatly for it.
- tome 17y agoI think part of the problem is that at the more extreme end they think that the world economy is going to collapse, so that if they're right, there will be no way those contracts will be honoured.