Daily Investment Tips

If you are thinking of investing in oil in 2011, there are three ways of investing in oil,  as a physical commodity, oil ETF or in oil stocks.

Oil Stocks 2011

Buying traditional oil stocks is the easiest method to investing in oil. You can buy stocks of oil giants such as Exxonmobil, Chevron, Shell and BP. One interesting oil stock is BP. The company stock was battered in 2010 due to bad news from the Gulf of Mexico accident. But the cost of the cleanup may be less than feared and the share price has recovered some of the lost ground.

Another good thing about Oil stocks is they are known for paying generous dividend.

Don’t limit yourself to the oil giants. There are many small oil companies operating around the world. If you look far and wide you may find undiscovered gems.

Oil Futures 2011

Oil futures market as been around, for a long time it has been the only way to invest directly in oil. Investing in oil futures is done via commodities market. In places such as London, New York and Chicago. This means you must use a commodities broker to invest in them. You can find commodities brokers online at several websites.

Oil ETF 2011

Now there are ETF, exchange-traded fund. Oil ETFs are traded just like shares but reflect the price of Crude oil price.

Oil ETF investments may not be as simple as they seem. Do consult a stockbroker if you are keen on investing in Oil ETFs.

written by Constantine Njeru \\ tags: Commodities Brokers, Commodities Market, Commodity Oil, Company Stock, Crude Oil Price, Etf Investments, Exchange Traded Fund, Futures Market, How To Invest In Oil, Investing In Oil, Oil Etf, Oil Futures, Oil Giants, Oil Stock, Oil Stocks, Physical Commodity, Price Of Crude Oil, Price Oil, Traditional Oil, Undiscovered Gems