Should I invest in oil?

[LandOfAThousandJumpers]

Can anyone with knowledge of investing advise whether it’s a good idea to invest in oil now prices have dropped and if so what type of deals to look for?

Op just look at vanguard index funds. Also good value at present

``Why look for the needle when you can buy the haystack... ''

Buy a basket of different things including oil, tech etc or buy index tracking fste 100 or USA markets. Then you buy everything.

Actually it is partly to do with that in terms of futures trading because there simply isn’t as much active manufacturing and moving of goods around as there was three months ago. That is why the stock got to saturation point.
OP if you don’t know much about oil or about investing or about the futures market, I’d say only risk what you are comfortable loosing.
You might be better off to wait a week or two and buy share in one of the more solid oil companies if you want to gamble a different way. But it is hard to predict these things and you have to be in for the long run.
It will be interesting to see what will happen. It is unbelievably expensive to halt production, it is cheaper to produce oil and waste it sometimes but of course this cannot be done that easily. No idea what will happen. I’m watching with interest and curiosity and hoping to learn a bit more on the subject.

Op just look at vanguard index funds. Also good value at present

Well said Swingingsally. I've been a Boglehead for 30 years. Vanguard reshaped the investment industry for the better for all of us.

Learnt a lot from this...thanks guys!

No.

"Eric Balchunas, an ETF analyst for Bloomberg Intelligence. “What you have to worry about is when oil gets too low or too high, it attracts the tourist types. This is a tourist trap.”
www.google.com/amp/s/www.bloomberg.com/amp/news/articles/2020-03-30/oil-etf-seen-as-tourist-trap-with-crude-trading-in-the-20s

Leaving aside the financial pros and cons, investment in oil is investment in climate change. Consider if you want to do that.

Useful explanation of what is going on :
mobile.twitter.com/gilbeaq/status/1252293724215762950

And as if by cue, an advert for trading oil appears next to this thread.

Consider this gambling and therefore don’t bet more than you can afford to lose.

If you’re investing then diversify as much as you can and as far as your funds can afford.

I think individual investors picking their own investments tend to generally be the ones that lose out. Someone has to and it isn’t the investment managers with years of experience.

Never think “it can’t go lower”. We said it about gilt yields and they continued to fall.