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- 18 May 2008
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Hi all!
I was just wondering how you can invest directly in oil and which services are used?
I know you can invest in companies which are heavily exposed to oil but not only would that be indirect but the company fundamentals will also influence the price. Furthermore the movements would not be directly proportional to that of oil's prices.
I did some research and 1 option was ETFs namely the USO http://finance.google.com/finance?hl...-8&sa=N&tab=we
which is fairly accurate in relations to oil prices but it is US based and I'm not 100% confident on ETFs as opposed to stocks. Furthermore not sure where one would buy US ETFs.
Another would be oil futures and options. But apparently these are huge risk/ huge reward devices. I can see why it would be risky for options but not futures. I think it has something to do with sheer amount of volume that one must start of with. Bundles of 1000s barrels along those lines. Furthermore where would one purchase oil futures and options.
I would just like your opinions and experiences with oil. I'm not comprehensive enough. As for my opinion on the movement of oil. I am fairly certain that in the medium-long run, oil will bounce back to the 90-100 region.
Many thanks for your advices and responses in advance. Cheers.
I was just wondering how you can invest directly in oil and which services are used?
I know you can invest in companies which are heavily exposed to oil but not only would that be indirect but the company fundamentals will also influence the price. Furthermore the movements would not be directly proportional to that of oil's prices.
I did some research and 1 option was ETFs namely the USO http://finance.google.com/finance?hl...-8&sa=N&tab=we
which is fairly accurate in relations to oil prices but it is US based and I'm not 100% confident on ETFs as opposed to stocks. Furthermore not sure where one would buy US ETFs.
Another would be oil futures and options. But apparently these are huge risk/ huge reward devices. I can see why it would be risky for options but not futures. I think it has something to do with sheer amount of volume that one must start of with. Bundles of 1000s barrels along those lines. Furthermore where would one purchase oil futures and options.
I would just like your opinions and experiences with oil. I'm not comprehensive enough. As for my opinion on the movement of oil. I am fairly certain that in the medium-long run, oil will bounce back to the 90-100 region.
Many thanks for your advices and responses in advance. Cheers.
