3 What are the three major methods of buying crude oil today

3) What are the three major methods of buying crude oil today? Define the methods

Solution

The three major methods for buing crude oil are

1) Invest In Stocks of companies producing crude oil : The companies below will benefit in a rising crude oil environment, as the recent slump in energy stock prices is overdone. Investors in these stocks will benefit from higher oil prices, which will help them perform fundamentally better.

Sunoco is a wholesale fuel distributor, it separates itself from other companies exposed to oil and gas prices with their convenience store fuel outlets.

Gulfport Energy that owns and operates oil and gas properties in the Louisiana Gulf Coast area.

Apache explores for, develops and produces natural gas, crude oil and natural gas liquids.

2) Invest in Oil Funds (ETF) :

United States Oil Fund is an ETF that reflects the performance of the spot price of West Texas Intermediate (WTI) light, sweet crude oil.

Velocity shares 3X long crude oil is an ETN composed of WTI futures contracts that will move three times the daily move of crude oil.

3) Buy physical quantity of crude oil : if you want to store crude oil as physical quantity, you would have to invest in huge tankers which can store the crude oil . There are a few companies that run convenience stores all across the country where you can purchase crude oil.