When looking for a new investment option, a good option for many investors would be to invest in oil. Oil can be invested either directly through commodities, through a wide range of individual oil company stocks, or through funds that ETFs and other funds that fluctuate in value based on trends in the oil commodity value.
For the past five years, the value of a barrel of crude oil has been very volatile. Today it is around $95 per barrel, which is roughly what it’s been for the past year. However, prior to that, there was quite a bit of volatility. Prior to the recession in 2008, the price of a barrel of crude oil was over $130. However, after the recession hit, the price of a barrel of oil fell to less than $40 per barrel. Since that point, it has steadily increased, which has made it one of the best investments over the past few years.
Going forward, investing in oil will continue to be a good investment. Oil will continue to increase in value for a number of reasons. The first reason for the increase in value will be improvements in the economy. The economy has continued to steadily improve following the recent recession and it looks like the improvement is going to continue. This will lead to greater demands for fuel as more goods and services will need to be produced and transported to keep up with increases in demand.
Another reason why oil will be a good investment is that decreases in supply will push up the price of the barrel. Oil is a natural resource which is being used far quicker than it is produced. While there is a lot of focus to find new sources of energy, oil will continue to be needed in a very significant capacity in the future. As supply continues to decline, the price of a barrel of oil will increase.
As discussed, there are plenty of ways to invest in oil. One great option would be to invest through Financial Directions, LLC, who offers oil and gas LPs and other investment options.