Expert: Steve Hach - 6/22/2008

Question
Hello,

I am begginer invester and I am very much optimistic about oil prices. I want to know how can I invest in oil. Should I invest in stocks of oil producing companies or is there another way to invest directly in Oil.


Regards,
Parimal

Answer
Hi Parimal,

Thanks for the question.

There are several ways to invest in oil.

Stocks in oil companies are easy, as are stocks in oil related companies such as drillers, drilling equipment manufacturers, etc.

You can also invest in oil sector ETFs, oil-related mutual funds, etc.

Although they are more risky for the beginner, you can also invest in oil futures and contracts.

Thanks again for the question.

Best,

Steve