Oil prices have been soaring for the past few years. While it is hurting people’s pockets real bad, there are few smart chaps who’re benefiting from it. If you’re also feeling the heat on your wallets and instead want to make money from it, this blog post shall be helpful to you.
Buy Oil Futures
Some people trade crude oil and futures in the commodity market. However, although the market is really huge, not a lot of people really do it. Why? Well, most people don’t know about oil futures contract. The purchase contract basically tells that you can buy a certain quantity of oil, a commodity, and sell it on a particular date.
The key to making profits from oil futures is to guess what the prices of oil would be over a period of time. But since oil prices have been rising quite steadily for the past few years, you can consider investing in it.
Invest in Any Oil Royalty Trust
Few investors smartly invest in oil royalty trust. Oil royalty trusts provide the shareholders with distributions on the profits from multiple oil producing organizations. The distribution is generally termed as dividends. The returns in the form of money can be as high as 30% or more every year.
The key in this form is investment is to spend only in royalty trusts wherein a field’s production is not affected by uncertainties. Those who can make the best from this type of business, usually make a ton of money.
Buy Stocks of Large Oil Companies
Only a few of oil companies are publicly traded. Even though their stocks are usually high, the good thing is – the prices for these stocks do not fluctuate much. If you can manage to purchase their stock options, you’re bound to make a lot of money. Simply because oil companies are always in demand and most of the time, their stocks grow quite steadily.
If you intend to make the most from these stocks, then be sure to have some good money in your pocket because stock prices are generally high but can provide great returns in the long-run.
Don’t Use Excess of Oil
A penny saved is a penny gained. If you use less oil, you obviously save money. The bet here is to be able to reduce your personal oil consumption, so that you spend less money. While this might not seem like you’re actually making money but over a period of time, you’ll have saved so much that you’d love it and continue doing it.
Mutual Funds That Holds Oil Company Stock
One of the easiest ways to make money online is to invest some money in mutual fund that has oil company stock. Majority of mutual funds carry at least one or two oil companies in few of the relevant organizations as well.
If you want to be good at it and make the most from it, be sure to invest in a mutual fund for the long haul and selecting a fund on its growth.
Buy Stocks of Big Oil
Big Oil is a term that represents 7 of the biggest oil firms that controls major portion of the world’s oil. These companies include ExxonMobil, Royal Dutch Shell, Chevron, etc. The stock prices of these organizations are high; however, once you get their stocks, you can be sure to earn a lot of money.
These companies know how to keep their stock prices up and their stocks always keep growing in spite of the volatility in the global oil industry. So, without any doubt, you can invest good amount of money in them.
To conclude, if you choose to make money and choose your investments wisely, you can earn quite well regardless of the rise in the oil price. Do keep the above tips in mind and make sure you get the best from them.
One thought on “How to Make Profits from Soaring Oil Prices”
I agree with you that money can be made from oil even when prices are rising. But the tough part is implementation.If a person is investing in oil F&O’s he should be able to time it properly to have profits same is the case with stocks and mutual funds. Now as we know market being volatile for past few months. Its better to invest money in diverse stocks than by taking chance with a single stock.
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