Low cost of oil per barrel, investment potential?
 

Has anyone considered investing in oil at the moment? Oil is so cheap right now, I'd imagine it would make anyone a killing when it goes up

Short answer, yes, a month ago. Long answer, instead of buying into Oil directly, I took significant positions in oil heavy energy mutual funds (FSENX and VGENX). These are likely less volatile, however potentially also less return than a direct investment. For reference, my total investment is up about 8% in the month.

Some of the big companies (CVX, XOM) are still down a bit and will probably get knocked down a few more times before they start climbing back up. Every time they take a hit, they seem to rebound over the next few days though. I see a lot of people talking about the smaller companies saying how those are where the most money will be made as long as they survive these low oil prices. Just keep an eye on the companies you like and if you see a significant drop, start a position or add to a current one. If you are looking for long term then I feel there is definitely potential in the energy sector right now.

Oil is too volatile right now, I don't know if we are gonna hit $20/barrel within the next 6-12 months or $200/barrel. There are way to many factors stretching across the world that can determine the course of its price, I would avoid for the timing being.

I agree, but i think you could say that for just about any investments these days. Roll the dice and hope your a winner. I dont gamble myself.

Hah that is true, I guess what I should have said was it's riskier than it usually is.

Also keep in mind that oil price is tied to our currency value and the price of our food/goods. When you decided you want to invest in oil, you are f@#king with our economy, superimposing on far more then just oil/gas prices. Just on principal I wont invest in the shit. We have enough speculators out there f@#king with the lives of average hard working folks as it has been. Id try and make a "quick buck" some other more sound way My .02.

*By the way there is a related ethical practices petition to sign in the politics forum. Hope to see that go through, its notably worthwhile. Check it out :tipwink:

Yes, I'm into couple. Gains seem inevitbale. Regardless of how long the low last. I don't think it's forever. Just hold it and let it run it's course.

Buying oil low isn't clearcut - because you typically buy into ETFs which are based on futures. Since they are buying futures, if they don't hit their price, the fund looses money, and the ETF stock price goes sidways or dips. Timing is key.

I also own FSENX and several other energy funds. I would not recommend that anyone buy directly into oil that was not a professional investor.