4 Ways To Invest In Oil
many people are looking for ways to invest in oil, a commodity used worldwide in several industries. investor, bill, decides to play the oil market to try and capitalize on a ? rise in oil prices. ?, he has many options to choose from. bill may decide that the safest way to invest in the commodity is to buy an oil sector mutual fund. this allows him to diversify his risk among several oil companies including refiners, producers and servicers, so that his accounts value won't be hurt by the poor performance of any single company. alternately, bill may prefer to buy an individual stock. he can buy shares of one of the major ? blue chip oil companies that have dividend payouts, ? successful history. while these oil company stocks don't move exactly with the price of oil, they have the ability to make big profits when oil and gas prices are rising. bill could also maximize his returns and risk by placing his money directly in oil by purchasing a futures contract. this contract is for the delivery of oil. it's value goes up with the price of oil and can be sold before the contract expires. the forth way bill can invest in oil is by buying an exchange traded fund. his investment will be directly tied to the price movements of crude oil on a daily basis. it really matches exactly over long periods of its time, but it is an easy way to invest in oil. bill needs to be aware that investing directly in oil is risky business. bill could make a nice profit, oil prices skyrocket. or, ? up a poor house if oil prices suddenly ?.