How to Invest in Oil Right Now

Regular 25% swings in crude? Negative oil? Here's how to tackle this chaotic period for energy commodities.
(Image credit: hh5800)

These are truly strange times to invest in oil. As if the market gymnastics weren't enough, the price of U.S. crude oil – or at least the front-month futures contract – went negative in April, and not by a trivial amount. At the bottom, West Texas Intermediate was priced below negative $37 per barrel.

Unfortunately, if you're a retail investor, there are limits to how you can profit from this. You can't just show up at the storage sites in Cushing, Oklahoma, get paid $37 per barrel to load up your pickup truck with oil, then promptly dump the barrels on the side of the road as you drive home with your profits.

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Charles Lewis Sizemore, CFA
Contributing Writer,

Charles Lewis Sizemore, CFA is the Chief Investment Officer of Sizemore Capital Management LLC, a registered investment advisor based in Dallas, Texas, where he specializes in dividend-focused portfolios and in building alternative allocations with minimal correlation to the stock market.