Topic: Best ways to trade or invest in crude oil (Read 255 times)

Some countries have indeed tried to find ways how they can be free from dependence on petroleum for fuel because it is quite disruptive to the environmental ecosystem and continues to suppress global warming with the carbon produced when it is burned.

However, when a major war occurs, oil becomes a global prima donna, as before when the Ukrainian war with Russia, global oil has increased in price, because maybe then and now there are still many who are dependent on oil.

But if you talk about the long term, I agree with you, maybe it will be extinct and humans will be enough not to suck oil from the earth anymore.

Just buy the major oil stocks like ExxonMobil, BP, Shell, Chevron etc... No need to make it complicated. You can bet on oil's future price too but I don't do options trading so I don't know it well. Remember; during covid19, oil prices went negative. Lots of people who were long on oil got wiped out because of that.

Oil is a smart play. It is often regarded as "black gold" and it is undoubtedly more useful than gold, so buying some oil companies is always a good idea.

You can hold royalty shares in gas pipelines, thats been a good bet at times.   Oil has a cost to storage, trade and transportation.  The simple way to own some oil is via the largest oil companies who both own reserves, extract refine and sell it internationally.

   BP is cheap at present but has some massive contracts to supply oil for a decade, they are controversial for some failures in the past but thats why they are cheap.  Most people are thinking of Tesla or similar for future energy but old oil production will carry on for decades and probably be here in a century still.  Just like Coal peaked a century ago but remains important in some areas and quite profitable.

Trading commodities is not something I would recommend in person.  USO is the oil ETF, it has a cost but can vary 20% in your favor without a great amount of risk but I'd not hold it forever.  End of last tax year it had risen 22% YTD pretty good for hands off

Form a company, place a decent value onto shares.
Have a few business partners as directors, better with good clean names.
Purchase Exxon shares (giving you a foot into the door), then get in touch with sales.

Between forming your company, setting directors you need to have a few months, looks just better.
Buying shares in the 1st year, approaching Exon, Mobile or else the next year.   

Oil is a viable asset, it's a day to day commodity that man kind can't do without but it doesn't mean the price will continue to appreciate continuesly because economy depend on crude oil in all areas and if the price increase, that means that the product will equally increase and so is inflation, so the price is been controlled by OPEC and you can't really make enough money from buying the token or holding them. The last I checked, oil price boom last in 2008 and since then it hasn't cross that all time high.

If you want to trade it fine, but it doesn't have that much volatility. I wonder how you intend to trade them unless you want to try leverage trading which ofcourse you and I know very we that's is a risky and gambling which can end in two ways, it's either you make it or it break you. So, the ball is in your court.

crude oil tokens? just heard about it
I thought investing in crude oil wasn't with brokers or companies that sell their shares? (sorry if I'm wrong)
I thought oil would be made more difficult to use and everyone would switch to electricity and sunlight to better protect nature,

Are you sure now is the time to make an investment into crude oil? It seems to be phasing out and in maybe 50 years we might not need even half as much as we do now. Especially if we focus more on fusion/nuclear power and plastic alternatives.

Seems to be a risky long-term strategy, to me.

I have never heard of cryptocurrency backed by crude oil, though.

Crude oil is one commodity that is still highly valued in the market today and many countries use it for different purposes not just for car industry purposes alone. In fact the car industry is just one aspect of many aspects that uses Crude oil. Crude oil is also refined into Jet fuel used for aeroplanes, private jets and fighter jets among other aircrafts. It is also refined into gasoline, diesel, petrochemicals used for fertilizers and synthetic plastics, lubricants used for machines and engines, asphalt used for road construction and roofing materials and so many more like in agriculture we have pesticides, herbicides, and insecticides.

If you look at the broad use of crude oil, you will agree that it's an highly valuable asset to invest in but it is also capital intensive and requires a lot of involvement from the government. For most people who go into such kind of investments, they must have gotten the backings of government in terms of securing readily available products for shipment, for others, they must have gotten companies who have the reputation of dealing with crude oils then invest in such companies. In all conditions, crude oil business is an highly luxurious and lucrative business but it is also extremely risky especially for someone who's new into the industry.

The best way to trade or invest in crude oil includes using futures contracts for direct exposure, ETFs for diversified investment or stocks of oil companies for indirect access. It's essential to analyse market trends, geopolitical factors & economic indicators. Keep informed on global oil supply & demand to make informed decisions. Always evaluate your investment goals & risk tolerance before entering the market.

Have you ever heard of Stanley Meyer, who died mysteriously after claiming to have created a water-powered vehicle? That invention would have made oil irrelevant to the energy sector already.

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I agree that the powerful individuals who profit from the sales of oil will not fold hands and let this investment just become obsolete, For that reason investment in oil can still be profitable.

You can trade/invest in crude oil, but it is also risky because crude oil price is also volatile. You can trade/invest in crude oil through the futures market/exchange, you can also buy stocks of oil companies or you can buy oil EFF's, AFAIK, these are some of the best ways to invest in the crude oil market. That being said, if you don't have the knowledge to predict or track oil prices well, then maybe that market is not the best one for you to invest in, and you might lose money.

Don't forget that crude oil investment requires a huge amount of money before you will be able to start the investment, and you need to have influencers in the country who will be giving you some vita information about the price in the market before you will be able to earn big profits from the investment. Why do you want to risk your money in such investment, when there are some estate investment, cars investment and transport investment where you can invest huge amount of money and within some years you will begin to earn big big profits that will reach you to start up another investment that will be adding profit to your profits.

If you have idea on crypto investment, you can embark on such investment because there are some crypto you will choose to invest and you will make what other people are making in crude oil investment and other investments.

There are multiple ways to do it if your country has a decent stock exchange. I will tell you what I can do from the perspective of my country.

1. But the shares of the oil companies. Especially those companies who own refineries. You can also buy stocks of the companies who does oil trading. But refinary owners will be best. This one for investment. Some companies in my country pays dividend for 5 times in a year. They are extremely profitable.
2. For trading, buy commodity derivatives. But derivatives come with a expiry date. So please understand the risk before you buy one.

As a retail investor, these two options are best. I don't think any crypto is available which is backed by crude oil. This business is Highly regulated so I don't think any option is available in crypto market.

And once again, the old fashion way of thinking survives. Oil is something we do use, hell in fact we use even more, but that doesn't mean that we will keep doing it. Why do you think you see those big swirly things all along the interstates? What do you think they do? They are just big fans to breeze the air? Or are they generating energy out of wind? Or what about some of the "techy" stuff you see on the roofs of some houses?

You think that's just the new Japanese roof trend? It's the solar panels, collecting energy from sun. We are using oil, but just like how Tesla got so high because we wanted EV, these energy companies in renewable sector will get a lot more in the future, and oil will be obsolete. Well not completely gone, we will still need it for some stuff, but not that much.

Aviation is the one to go, if we can figure out a way to fly a plane without any type of oil, even jet fuel, we could make it possible for energy sector to get rid of oil once and for all. The fact that we are so dependant on it at the moment makes nobody happy, we want something that's easier to get, and one city size solar panel could light up every part of USA, same goes for many other countries, so we just need to make the switch.

There is at least one new project in altcoins right now whose managers state that their aim is precisely to make it easier investing in crude leveraging blockchain technology, breaking the traditional boundaries of this market.

I won't add a link as I don't want to spam that project, and like everything crypto, DYOR and don't invest what you can't afford to lose. Especially because the identities of the members of the teams behind such projects aren't disclosed until subsequent phases of funding.

Anyway, although I have never done it before, I don't think it is very difficult to invest in any commodities nowadays the traditional way, like you'd do with any other shares of companies or different assets.

It may not take that long, but it's certainly not in the near future. Currently, 40% of the world's energy comes from oil, which is not going to change over a couple of years; it's going to take time. Oil is used not just for vehicles but also to provide electricity.
Planes and space rockets still use oil products even though there have been alternatives, a lot of research has to be done before it can become a norm.

If I want to go into conspiracy theories, I believe the money in the oil and gas sector is too much for the people who make that much from it to sit and watch their sector become irrelevant. Thats why I say it will take time. This is always why I believe third-world countries would be developed enough to afford electric vehicles. They don't even steady electricity supply, so how would they manage and electric vehicle? 

I've search some of this and this is what i think bare with me. The petroleum is obviously placed at such a strategic point concerning global energy and infrastructure that it still remains on the radar. A vast number of methods of investment in oil or trading on oil exist with different sets of advantages and risks associated with each one choice remains the more classic approaches. They range from investing in oil stocks-particularly through purchasing the shares of the companies from the oil sector, or through the funding of ETFs through, for instance the United States Oil Company-aka USO to it through monitoring the reaction of oil with natural products. Futures contracts are one way to estimate future oil prices but require a thorough understanding of the futures market, as it is complex and risky. Likewise, different exposures are offered through shared income that is derived from various sources of energy. The oil support tokens, Crude Oil Token-COT for example, are typical of what physical ownership of oil is, providing a digital financial system, although its currency and market acceptance may be different though. Some blockchains have been working on tokenizing commodities, like oil. However, these are new commodities with attendant risks, including regulatory concerns. Given there is a plethora of other types of stablecoins also pegged to oil, much like Tether Gold is pegged to gold, products like these are really just starting to sprout in the space. Any investment strategy should be carefully analyzed, albeit for flexibility, suppleness, and alignment of investment goals and risk tolerance.

The best way of course depends on someone's needs. I believe for majority investing in crude oil futures will work as that's the easiest way to bet on crude oil. I haven't yet found any crude oil backed token on the market and that's why can't recommend you any.

In order to trade futures of crude oil you'll have to find a genuine broker that supports crude oil trading. Alternatively, you can also invest in crude oil ETFs and to be honest for most people the best option is always going to be trading crude oil ETFs.

To an extent I agree with you but talking centuries it might not be that far before electronic vehicles and tools take over the world today and the near future because from my perspective or my environment people are really opting for electric vehicles which has reduced the vitality of crude oil.

Certainly there is a very big truth that the crude oil dealers and other wealthy investors in the oil industry are not letting people outside the industry know because literally they aren't leaving the industry anytime soon but scare people away with the development of the electric dependant vehicles etc.

Two ways, through a broker and through you holding it in actuality and selling it on your own.

But most of the oil holders or traders are just going with the flow through brokers that has its on their lists, that's way easier just like us trading crypto through exchanges, p2p or spot markets.

That won't work, remember petro or the maduro token that's backing their oil? I think that has became an issue before but didn't went into fruition.