Oil investments

juror

I'm looking to invest in oil. Not sure where to invest.

I have a US stock trading account, so preferably some ETF/Oil related stock trading on the US market.

Any advice welcome.

Thanks

Prezatch

What makes you think the price of oil is going to increase? You'd want to be a brave man to be investing in it right now

http://www.bloomberg.com/news/articles/2015-12-11/iea-sees-oil-glut-lasting-until-late-2016-as-opec-keeps-pumping

threadleeroy

juror wrote: »

I'm looking to invest in oil. Not sure where to invest.

I have a US stock trading account, so preferably some ETF/Oil related stock trading on the US market.

Any advice welcome.

Thanks

Put your money into Petroceltic...

TheFin

Even though oil price is tanking some think there is some value in shares because of their dividend yield - eg Chevron (CVX) is 4.3%

Brussels Sprout

OP, if you just want something to track the price of a barrel of oil then check out the United States Oil Fund LP ETF (NYSEARCA:USO).

RobertKK

There is nothing to drive up oil prices, if anything they will continue lower unless OPEC cut production, the US won't cut its production and unlikely Russia will.
Some analysts believe it is going to go below $30 a barrel.

Nody

RobertKK wrote: »

There is nothing to drive up oil prices, if anything they will continue lower unless OPEC cut production, the US won't cut its production and unlikely Russia will.
Some analysts believe it is going to go below $30 a barrel.

And yet there are oil companies who're making plenty of money anyway (just not the guys who're taking it out of the ground as a rule of thumb)...

OttoPilot

RobertKK wrote: »

There is nothing to drive up oil prices, if anything they will continue lower unless OPEC cut production, the US won't cut its production and unlikely Russia will.
Some analysts believe it is going to go below $30 a barrel.

Some analysts also believed we were heading for Euro dollar parity at 1.06 and now we're at 1.10 thanks to Mr Draghi

frank_scorpio

RobertKK wrote: »

There is nothing to drive up oil prices, if anything they will continue lower unless OPEC cut production, the US won't cut its production and unlikely Russia will.
Some analysts believe it is going to go below $30 a barrel.

true but the bargains are only ever to be had before most realise that the bottom is in , unless the entire oil landscape has been completely transformed in an unprecedented revolution , its hard to see how the oil majors are not very cheap

shells dividend is now 8% , bp is not far off it , thats a better return than property almost anywhere right now and with no effort required to get paid

shugy

frank_scorpio wrote: »

true but the bargains are only ever to be had before most realise that the bottom is in , unless the entire oil landscape has been completely transformed in an unprecedented revolution , its hard to see how the oil majors are not very cheap

shells dividend is now 8% , bp is not far off it , thats a better return than property almost anywhere right now and with no effort required to get paid

What is the taxes on that 8% thou. Ive 10k to invest and would consider this but tbh, know nothing about investing

Prezatch

Taxes aside, Royal Dutch Shell have lost 32% of their share value year to date... the likelihood of them continuing to pay out a high dividend is getting slimmer by the day as oil drops

TheFin

//seekingalpha.com/article/3754606-dividend-aristocrats-part-33-chevron?li_source=LI&li_medium=liftigniter-widget

manonboard

What do they mean by 27 years of consecutive dividend increases?

There seems to be no more than 5 years at most of dividend increases? then it falls back down?
Are they mis using the word consecutive?

Nody

manonboard wrote: »

What do they mean by 27 years of consecutive dividend increases?

There seems to be no more than 5 years at most of dividend increases? then it falls back down?
Are they mis using the word consecutive?

Looking back to 1990 it has always remained the same or increased; however back in 2004 there was a stock split (1 old to 2 new) which may be what's confusing you or you are looking at the graph showing the dividend as a percentage of share price (which has nothing to do with being a dividend aristocrat).

Grecco

This is the main thing you need to know for the next year

Young Blood

Hi Op

Ya I've been thinking of doing the same. I mostly do currencies and have never done oil before but it's worth a punt just to see how the market goes.

If worst comes to worst it will go to 20 dollars a barrel but it's not going to completely lose its value now is it?

Its a good time to invest from what I've heard.

arrowloopboy

Just be carefull going the ETF route,their value seems to drop as the price goes down ,as you would expect ,but a lot of them lag when things turn around ,surprisingly enough:eek:.
Oil has an intrinsic value ,unlike an equity ,it cant go to $0 a barrel ,it can't get much under $30 a barrel ,because of the cost of production.
At the moment you've a possible downside of an absolute max of $10 a barrel ,with a possible upside of anything up to $100 (which I agree is unlikely in the near term ,but not beyond possibility longer term )
If you've time on your side ,its not a question of making money,its a question of how much !

moneymad

arrowloopboy wrote: »

Just be carefull going the ETF route,their value seems to drop as the price goes down ,as you would expect ,but a lot of them lag when things turn around ,surprisingly enough:eek:.
Oil has an intrinsic value ,unlike an equity ,it cant go to $0 a barrel ,it can't get much under $30 a barrel ,because of the cost of production.
At the moment you've a possible downside of an absolute max of $10 a barrel ,with a possible upside of anything up to $100 (which I agree is unlikely in the near term ,but not beyond possibility longer term )
If you've time on your side ,its not a question of making money,its a question of how much !

BrokenArrows

If the OPEC decided to cut production tomorrow to the quantities they had 12 months ago, how long would it take for the barrel cost to return to 12 month ago levels.

Simon2015

When the Iran Oil comes online next year the price of Oil will probably hit the floor.

arrowloopboy

Simon2015 wrote: »

When the Iran Oil comes online next year the price of Oil will probably hit the floor.

A lot of this is already priced in Simon,and what do you consider ''the floor'' ,as i'm thinking were not that far off it at the minute ,$25/$30 maybe ,that's not massive downside when you consider where the top could be .

cute geoge

I am thinking of taking advantage in the drop in the price of oil by buying shares in either bp or royal dutch shell.I wonder is there much of a posibility of either shares dropping in price much more .Will the currency exchange wipe out any profit if uk leaves the e.u.
I am a ameteur investor and have made plenty of fckups and am trying just to make a decent investment and would lads have a preference for either bp or shell

bizidea

Rather than investing in an oil company is it possible to invest in actual barrels of oil new to investing and am interested in oil

Nody

bizidea wrote: »

Rather than investing in an oil company is it possible to invest in actual barrels of oil new to investing and am interested in oil

Well there are futures on oil you can look at because if you buy the actual oil you'd also need to pay for the physical storage of it...

cute geoge wrote: »

I am thinking of taking advantage in the drop in the price of oil by buying shares in either bp or royal dutch shell.I wonder is there much of a posibility of either shares dropping in price much more .Will the currency exchange wipe out any profit if uk leaves the e.u.
I am a ameteur investor and have made plenty of fckups and am trying just to make a decent investment and would lads have a preference for either bp or shell

Honestly you'd do better to read up on value investing etc. first and then analyze the companies and make your own decision because until you do you're rolling a loaded dice (and it's not in your favour). Why? Because everyone on the internet are an expert who makes a quazillion dollars a year trading if you believe what they tell you

Sonnenblumen

arrowloopboy wrote: »

A lot of this is already priced in Simon,and what do you consider ''the floor'' ,as i'm thinking were not that far off it at the minute ,$25/$30 maybe ,that's not massive downside when you consider where the top could be .

I agree, buy when the market isn't