The global oil price is going down sharply? is it a chance to buy oil ETF? and which one to buy?

S

spiking

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The global oil price is going down sharply.

Does this mean it is a good chance to buy oil ETF? and which ETF is related to oil price and worthy buying?

many thanks in advance
 
i see there are 2 options on Davy:

- db x-trackers Stoxx® Europe 600 Oil & Gas UCITS ETF 1C (EUR) DXSD
- iShares Oil & Gas Exploration & Production UCITS ETF (GBP) SPOG

I only know the 2 are traded in EUR and GBP, but not sure which one whould be a good choice?
 
I'm the last person you would want to ask I only started investing three weeks ago and have lost 10 grand already on a fairly diverse portfolio of ETFs!!
 
landlord said:
I'm the last person you would want to ask I only started investing three weeks ago and have lost 10 grand already on a fairly diverse portfolio of ETFs!!
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thank you for your honesty. feeling scaring ....

good luck to you.
 
landlord said:
I'm the last person you would want to ask I only started investing three weeks ago and have lost 10 grand already on a fairly diverse portfolio of ETFs!!
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Was your investment timeframe 3 weeks ? You haven't lost anything until you sell your ETFs - a paper loss is not a realised loss!
 
landlord said:
I'm the last person you would want to ask I only started investing three weeks ago and have lost 10 grand already on a fairly diverse portfolio of ETFs!!
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It's good to see some early losses purely from a mental point of view , most people can't deal with losses I noticed that even amongst professional gamblers , they say they can but they can't , the people that deal with losses best but continue to push the money into value are the most successful long term, my etf are about 20-30k down this week, I made a similar amount on ebor festival its hard not to think I've actually had a zero net gain but meh feck it only price that counts is the price I pay for it and the price I pay deemed disposal on in 8 years time.
 
Thanks guys the truth is I don't intend to sell now and make what may be a temporary loss into a permanent loss It's a long term 15 year minimum investment. I will take the rough with the smooth, unfortunately its started out rough!! Back to the OPs original query....... Who would've thought that oil would have dropped to below $40 a barrel!!
 
Well i posted on another thread, Im having a bad year myself due to the oil and mining stocks i have. I thought I was the only one doing badly as the general markets are not down that much, only in last few days. You make good points Fella alot of people find it hard to watch their portfolio falling in value. I dont know why the falling markets are not getting more media attention. I was invested during the 2008 crisis and watched everything rebound in 2009/2010. I did not have any bank shares then , however this time Im more in the firing line. I also understood things better then, this time i dont understand why big falls are happening. The markets seem to be concentrated on one issue whether the fed will raise interest rates.
 
landlord said:
I'm the last person you would want to ask I only started investing three weeks ago and have lost 10 grand already on a fairly diverse portfolio of ETFs!!
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If it's any consolation, I'm also fairly new to investing, and went off prematurely on oil stocks last autumn. Ten grand would seem fairly inconsequential compared to what I'm down.

I'm not that worried. Cheap oil may be with us for a while, but it's a temporary blip in the grand scheme of things.
 
buying oil itself is not a good idea as the instruments which allow you to do so are highly leveraged and based on the roll over contract system , its strictly for pros IMO

much better to buy shares in oil companies, most of them are paying dividends in excess of 5%
 
I think the OP was talking about an ETF, rather than buying oil directly. I'd also avoid oil exploration and oil services companies, both of which will be getting hammered by the current prices, and/or failing to find farm-out partners for new prospects. Those aspects may take quite some time to recover. I'd be more interested in the oil majors whose share price tends to fluctuate more directly with the price of oil. On a cautionary note, Exxon and Shell both looked like good bets back in January when the oil price reached a temporary low and both companies fell 10%, which they recovered fairly promptly when prices came back in the Spring. But both are now trading below the January levels. I don't believe the world can produce enough oil at $40 to satisfy demand, so prices will be higher than they are now in the near term (for some definition of "near").
 

I know he is talking about an ETF which tracks the price of oil , Im saying its a bad idea , very hard to make money with these instruments , they involve roll over contracts so holding long term in anyway is not the way to make money
 
Did you invest in oil ETF after?. Oil and commodities have had the biggest weekly rally since 2011 albeit from very low levels. They and emerging markets have been leading the global stock markets back up over the last week. If you had been already invested like me you are just getting back some of the losses. These have been the most beaten up sectors over the last few years. All the huge trend following algorithms that make money by following a trend get hammered when the trend changes abruptly and then they have to reverse out rapidly.
 
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