View Full Version : how do i actually buy oil

08-31-2005, 11:46 AM
i keep hearing oil is x dollar per barrel . i would like to buy some oil since there is this huge shortage of oil...

i have ameritrade what stock key do i enter to buy?


08-31-2005, 02:09 PM
You're kidding right? This is a joke post right?
If not, call up your local oil supplier and tell them you want to buy oil. They will then deliver it to your house. /images/graemlins/smile.gif

08-31-2005, 02:51 PM
LOL, hope he has an inhome refinery as well.

08-31-2005, 05:16 PM
come on guys...lets think a little before bashing someone.

The question he is asking is how to buy oil in a stock sense...just like saying "How do I buy Microsoft" you tell them to buy shares of MSFT. Oil works the same way but I believe the only way you can directly buy oil is in the futures market...where you are basically buying options on contracts of oil.

If you are looking for a way to buy using a general online broker you might want to just pick a company that you expect to profit more as oil rises and either buy shares or calls on that company.

Someone a little more knowledgeable will be able to give you specifics...I just thought I would get this thread on the right track


08-31-2005, 05:38 PM
I was just kidding. Yes, the most direct way to play the oil market is by buying futures on oil contracts. If you want to play with stocks, you'll need to do research on various companies invloved in the oil industy - Exxon, BP, or maybe the oil services industy etc. etc. I'm sure there is an oil index that trades in the form of an ETF.

08-31-2005, 05:39 PM
Is it a good idea to buy oil dependent companys' stocks now?

08-31-2005, 05:50 PM
If you want to buy an oil futures contract you need a commodities account, which I do not think you have.

Otherwise with a brokerage account like yours you can buy:
Royalty trusts: BPT
Integrated oil company: XOM
Integrated oil ADR: PZE
mutual fund: VGENX
and others that service oil fields, make pipes to carry oil, operate piplines, tanker companies ...

You could also short oil sensative stocks like transports and airlines.

08-31-2005, 11:06 PM
You can buy oil futures but you need a commodities or futures account. you should be able to find this. gasoline futures have been soaring while crude oil futures rising just a little bit. the oil stocks are also quite complicated as they tend to trade with oil but there are other factors involved.
dont think it is a good idea to chase the oil hype at this point but i could be wrong. usually think it is better to take the other side of the hype.

Ray Zee
09-01-2005, 02:09 AM
find companies that will be effected some time down the road from high energy costs. not ones in the news or ones every one can figure out. then take the appropriate position

for instance, 3m company and rubbermaid. they make alot of products with oil. so their cost of goods will increase at some point and will have to raise prices which lowers profits. its up to you to figure at what point in time this may take place if at all.
a big one is tires. prices must rise. people will buy less or cheaper ones. two sides of the coin to play here. short who makes toyo or michilin and buy cooper.
large trucks stop selling. so short chevy and buy toyota.

people will travel less. so buy movie rental companies, internet companies.
more money for ups or fed ex as it makes more sense to send it than bring it.

get the picture.

but the big band for your buck comes from the smaller companies you find that their results will be most affected by the change.

09-01-2005, 12:33 PM
i did it by buying GW