Investing in oil?
Discussion
Mrs and I are talking over that now might be a good time to put a daft investment into oil or oil related industry.
Although we have been buyng unit and investment trusts for years as part of long term investments, we have only once befor bought shares and that was years ago.
Just wondering how we would go about taking advantage of the current downturn in oil price as an investment and the best way to do that?
It would be money we could afford to lose, we would be looking at not expecting a return for at least two years, and we realize there may be a cost to buy.
Cheers
Although we have been buyng unit and investment trusts for years as part of long term investments, we have only once befor bought shares and that was years ago.
Just wondering how we would go about taking advantage of the current downturn in oil price as an investment and the best way to do that?
It would be money we could afford to lose, we would be looking at not expecting a return for at least two years, and we realize there may be a cost to buy.
Cheers
I would not look at investing money into a single "oil" company or business. With these lower prices many could face financial difficulties, shut down, slow down business etc.
What you could look at is the Junior Oil Fund http://www.junioroils.com/ which invests in new and current oil companies. Since 2011 its had about 80% taken off its highs. Its a managed Fund so you will allow the Fund Manager to make the investment choices for you depending on where they see value. Its well down now off its highs due to Oil Prices so now might be an idea to drip feed into the fund rather than a lump sum.
I think its available as accumulation and income regarding profits
Personally Ive been shorting Oil and have some positions open down to $40 which I think we might see. (Profits going back into this fund via Hargreaves Lansdown hoping to see some higher oil prices) So perhaps there is lower prices to come for the Junior Oil Fund. I invest into this fund for my SIPP and my childrens SIPPs which I manage for them
There is also the Artemis Global Energy Fund which includes Oil in its portfolio. Also available (but based valued in $ so be aware of currency fluctations when paying in or out) is the United States Brent Oil Fund.
Something else to look at is maybe Copper......
This is no recommendation but purely a fund for you to look at. Good luck
What you could look at is the Junior Oil Fund http://www.junioroils.com/ which invests in new and current oil companies. Since 2011 its had about 80% taken off its highs. Its a managed Fund so you will allow the Fund Manager to make the investment choices for you depending on where they see value. Its well down now off its highs due to Oil Prices so now might be an idea to drip feed into the fund rather than a lump sum.
I think its available as accumulation and income regarding profits
Personally Ive been shorting Oil and have some positions open down to $40 which I think we might see. (Profits going back into this fund via Hargreaves Lansdown hoping to see some higher oil prices) So perhaps there is lower prices to come for the Junior Oil Fund. I invest into this fund for my SIPP and my childrens SIPPs which I manage for them
There is also the Artemis Global Energy Fund which includes Oil in its portfolio. Also available (but based valued in $ so be aware of currency fluctations when paying in or out) is the United States Brent Oil Fund.
Something else to look at is maybe Copper......
This is no recommendation but purely a fund for you to look at. Good luck
Edited by oldaudi on Wednesday 14th January 10:57
Edited by oldaudi on Wednesday 14th January 11:53
ked and the big players will just pick up the pieces.If you take the view that OPEC will have to blink eventually, might it be worth making regular purchases of something like a Crude ETF over the next few months? True, no dividends that way, but if you think the price is going to creep back up eventually, might be worthwhile to build a position from which to take advantage?
Like others have said on here, simplify it and invest directly into oil, there's a list of the oil ETF's here, bear in mind some are leveraged.
http://etfdb.com/type/commodity/energy/crude-oil/
You'll have to do research and figure out what each etf is exposed to, personally I bought into USO, it invests in WTI crude futures one share will give you the exposure of roughly one barrel of oil.
http://etfdb.com/type/commodity/energy/crude-oil/
You'll have to do research and figure out what each etf is exposed to, personally I bought into USO, it invests in WTI crude futures one share will give you the exposure of roughly one barrel of oil.
Edited by twinturboz on Thursday 15th January 09:10
Edited by twinturboz on Thursday 15th January 09:13
3 which may be of interest
blvn - soon will be trading under cash released from farm out and imminent drilling with free carry.
enq - cheap as chips - this years production hedged at $80bbl , directors have bought at much elevated prices in the last couple of months.
afr - cheap as chips - the oil industry cannot sustain itself on $40 bbl for the long term .
DYOR
blvn - soon will be trading under cash released from farm out and imminent drilling with free carry.
enq - cheap as chips - this years production hedged at $80bbl , directors have bought at much elevated prices in the last couple of months.
afr - cheap as chips - the oil industry cannot sustain itself on $40 bbl for the long term .
DYOR
dingg said:
3 which may be of interest
blvn - soon will be trading under cash released from farm out and imminent drilling with free carry.
enq - cheap as chips - this years production hedged at $80bbl , directors have bought at much elevated prices in the last couple of months.
afr - cheap as chips - the oil industry cannot sustain itself on $40 bbl for the long term .
DYOR
I hope someone took noteblvn - soon will be trading under cash released from farm out and imminent drilling with free carry.
enq - cheap as chips - this years production hedged at $80bbl , directors have bought at much elevated prices in the last couple of months.
afr - cheap as chips - the oil industry cannot sustain itself on $40 bbl for the long term .
DYOR
enq up over 20% since posting
afr up about 10%
blvn break even - may look better tomorrow
dingg said:
dead cat bounce or not - a quick 20% could you been made on the trade today alone
try getting that from the bank.
shall we have a look in a years time eh from a 22p buy in today ?
So are you up on ENQ or down (overall)?try getting that from the bank.
shall we have a look in a years time eh from a 22p buy in today ?
Forgive my cynicism but anyone who thinks they can call the bottom on a share like this (in periods of volatility like this) is mad.
mostly in blvn
never did say I was calling the bottom (bit of a fools game and impossible task at the best of times and oil may well fall further in the short term) , but scaling in at these levels in afr and enq as well as blvn is a no brainer , with a viewpoint that oil will be back to $80bbl at year end.
eta
it was afr up the 20% not enq , enq is up about 6%
got me tickers crossed in posting
never did say I was calling the bottom (bit of a fools game and impossible task at the best of times and oil may well fall further in the short term) , but scaling in at these levels in afr and enq as well as blvn is a no brainer , with a viewpoint that oil will be back to $80bbl at year end.
eta
it was afr up the 20% not enq , enq is up about 6%
got me tickers crossed in posting
dingg said:
mostly in blvn
never did say I was calling the bottom (bit of a fools game and impossible task at the best of times and oil may well fall further in the short term) , but scaling in at these levels in afr and enq as well as blvn is a no brainer , with a viewpoint that oil will be back to $80bbl at year end.
Well good luck - I would always advise staying away from the oil minnows though - too many people get burnt.never did say I was calling the bottom (bit of a fools game and impossible task at the best of times and oil may well fall further in the short term) , but scaling in at these levels in afr and enq as well as blvn is a no brainer , with a viewpoint that oil will be back to $80bbl at year end.
I'd say those rises today were more luck that anything. Given whats just happened to the FX Markets following SMB news all Oil is up.
But as you say, take the profit, its more than the banks give and spend it wisely! Given that the Swiss Franc is no longer safe Id be looking at long Gold again
But as you say, take the profit, its more than the banks give and spend it wisely! Given that the Swiss Franc is no longer safe Id be looking at long Gold again
Edited by oldaudi on Thursday 15th January 17:55
oldaudi said:
Given whats just happened to the FX Markets following SMB news all Oil is up
Was up Edited by oldaudi on Thursday 15th January 17:55
, second time I'm trying to buy a bounce in oil, frustrating to say the least, had signs yesterday of a bounce, oh well stopped out at a tiny profit today. Guess it's back to the drawing board. Going hard right for a moment, it isn't just the minnows at risk - BP is still looking vulnerable. If oil stays cheap for much longer, its 20(?)% stake in Rosneft has to make it a desirable target, and rather desirable for share appreciation if any takeover does happen or even look likely.
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