I think oil has more upside than downside......what is the best way to play it?

Answer 1

http://Energy-Reporter.Org/ has some good info on trading oil ETFs, futures, options, and of course stocks. Any of these vehicles should help you cash in on a run in oil.

Answer 2

I think we are running out of oil, and the oil that remains to be found will be harder and harder to find and extract. This makes me believe that oil service companies will be the big winners of the future. I own Nabors Drilling (NBR), and Bolt Technology (BTJ), and Mitcham Industries (MIND).

If you are looking for oil investing ideas you might look at the following portfolio:

http://www.top10traders.com/ViewPortfolio.aspx?userID=8

This portfolio is from http://www.top10traders.com - this is a free site that lets you create a portfolio of stocks with $100,000 in "play" money. Each day the site ranks the best performing portfolios, so you can see how your picks perform compared to other investors. You can also read posts on investing from the best traders, as well as share your own investing ideas.

Here are this month's best traders:

http://www.top10traders.com/Top10Standings.aspx

Good luck!

Answer 3

Oil may have more upside, but if the Democrats get in, watch out for oil stocks, they may take a downturn, since Dems want to tax the oil companies excessive profits.

Answer 4

I am sorry but no one can master oil trading unless...
1. You own a huge oil company producing millions of barrels a day.
2. You are a very powerful politician that can decide when and when not to make war with another country.

If you're none of the above, you will still profit by following along the big shots.

Answer 5

I would sell futures options puts on Crude Oil, probably with a January expiration about $5 to $7 per barrel out of the money.

Answer 6

You have to separate the opportunities into profiting directly due to movement (futures, options on futures, or ETF's)....or indirectly profiting by investing in companies who should improve with oil's prospects. When investing in the latter it is not enough that oil goes up but you have to look at it's fundamentals and above all what the company has in reserves (oil/gas inthe ground). Sometimes energy service companies (shippping, drilling, etc) are a good play. You don't have to worry about reserves. And finally, when oil goes up alternative energy goes up. That is uranium (hardly alternative) but also ethanol, wind, biodiesel, etc. These are driven by the hot energy market. One of my favorite companies is PBR (Petro Brasileiro) This is the Brazilian state oil company but trades on the NY. It not only is growning oil and gas reserves but also owns a great share of Brazil's hot ethanol market. I traelled there often in 2004 and sugar based ethanol is hot and PBR is at the center. Great company with great fundamentals. Also for uranium consider CCJ.

Answer 7

actualy for years the world was wasting its natural resources.. becaseu above oil lays a pocket of gas. so they were lettingthe gas out to the envirment via vents...

the price of a container of oil at the supermarket or car supply shop has been the same price for the last 25 years that i can remember... so it makes me wonder again how is the pirce of oil going up when its showing the same in store over that period of time. i think that the governments want us to start thinking about biochemical environmentally efficient fuels.. so thats a way to get it all going on a higher scale. there are other reasons they dont tell us abotu what is going on....

plus i have a freind in germany who drives his car on sunflower oil... very cool indeed

Answer 8

several ways to play it all of them ETF's (none of which I endorse until next year)

USO Pure crude oil play based on the one month future contracts of the black gold.

DBC A recent entry from Deutsch Bank its a commodity play that is majority oil

DJP The counterpart of DBC but the advantage DJP has is that it is more balanced and deals with wheat, aluminum, natural gas, regular gas, and about 15 others.

XLE (My personal favorite) sold it recently to lock in the profits i bought on it last year this one is based on production (Exxon, BP etc.) and distrubition (I think Halburiton is in this as well)

Oil has taken a hard hit lately and i just don't feel that comfortable in investing the rest of this year unless somthing goes wacko in the middle east.

There are more but these are considered the top 4 (at least in my book)

Answer 9

Your question makes absolutely NO sense to me. How do you play oil???

Answer 10

i'm sure there are plenty of futures out there to invest in, find an option trader online