How To Invest In Oil: A Guide For Beginners

The College Investor Audio Show · Jun 22, 2020 · 6m

If you're wanting to learn how to invest in oil, it's important to point out right off the bat that oil investing isn't for everyone. To give you an example of how wild of a ride oil can be, consider the fact that West Texas Intermediate was trading in the mid-50s in February. Then it fell to negative $37.63 on April 20.

The plunge was due to the reduced travel caused by the Covid lockdowns. As demand for oil dried up, storage swelled. Negative prices reflected the fact that futures traders were willing to pay someone to take delivery of their oil.

Oil has been a source of speculation and…