How do you invest in Oil?

[Si83]

Hello, I’ve stayed away from investing in commodities in the past. The recent headlines of $30/barrel have made me curious if there is an easy access way to invest in a way which tracks the oil price.

I’ve tried to find this online but just get pointed to investing in oil shares, Shell BP etc which is not my intention.

For gold I invest in an ETF which tracks the gold price and this is what I’m looking for but I have a feeling it doesn’t exist due to the nature of holding oil etc.

Assuming oil heads back to $50 in the next few months/years, is there some way to invest now to take advantage of the current price?

Thanks!

[colin]

Exchange trade commodities, but you have to learn about contango. ( don't ask me). Commodities are usually invested in through futures contracts which is why buying oil company shares is considered to be much more straight forward.
https://www.hl.co.uk/shares/exchange-tr ... st-of-etfs

[dspp]

Hello, I’ve stayed away from investing in commodities in the past. The recent headlines of $30/barrel have made me curious if there is an easy access way to invest in a way which tracks the oil price.

I’ve tried to find this online but just get pointed to investing in oil shares, Shell BP etc which is not my intention.

For gold I invest in an ETF which tracks the gold price and this is what I’m looking for but I have a feeling it doesn’t exist due to the nature of holding oil etc.

Assuming oil heads back to $50 in the next few months/years, is there some way to invest now to take advantage of the current price?

Thanks!

Directly or indirectly you will be investing in oil shares. The stuff doesn't come out the ground on its own. So you may as well do it directly and just buy a chunk of BP and RDSB if you are an average UK retail investor.

If you are not an average UK retail investor then other ways are possible. But then you would not have asked the question you did.

regards, dspp

[Si83]

Thanks all for the replies, I am indeed a retail investor and try not to invest in products which I don’t understand.

For gold I invest in GBS which tracks the gold spot price - below I paste their description. Is there nothing similar for oil spot price?


Gold Bullion Securities (GBS) is designed to offer security holders a simple and cost-efficient way to access the gold market by providing a return equivalent to the movements in the gold spot price less the applicable managemen

Thanks

[richfool]

Whilst I prefer to stay away from investments in oil companies, I do have a holding of Middlefield Canadian Income Trust (MCT). It's investments include pipelines.

https://www.hl.co.uk/shares/shares-sear ... ome-gbp-pc

[colin]

Thanks all for the replies, I am indeed a retail investor andry not to invest in products which I don’t understand.

For gold I invest in GBS which tracks the gold spot price - below I paste their description. Is there nothing similar for oil spot price?


Gold Bullion Securities (GBS) is designed to offer security holders a simple and cost-efficient way to access the gold market by providing a return equivalent to the movements in the gold spot price less the applicable managemen

Thanks

As far as I know gold etfs actually hold physical stocks of gold in vaults, that's how they track the price, that's not possible with oil unless you want to buy a tanker full and people do actually do that ,hold it in port and release when the price rises.
What's wrong with just buying shares in Shell and BP , getting a usefull dividend while waiting for the price to rise?

[BobGe]

"How do you invest in Oil?"

Frankly, asking a question like this suggests that you are perhaps best not to...
Sorry, not trying to put a dampener on it but I would heed the previous poster's final sentence, as well as dspp's earlier.