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I've been keeping busy away from but just got a blast from the past re-reading those posts (below) from fall of 04
by Buckaroobonzai and myself and others on the oil/gas board,
where I just posted this short inquiry....and as you might
guess, I'm making this visit to ask on this
board, too, what might be a FAQ,
but is there a way to buy oil directly, 100 bbl or less,
or say 10K or less, via a mutual fund or any other kind
of arrangement that avoids options...that is a path
that is not an "option" for me, I'm just not going
down that path (best wishes to those who do..) so
hence my question -- ETF or mutual fund or the like,
where one can invest a modest (see above numbers)
amount not to try to time things with options but
to OWN something like 100bbl (or less) or $10K (or less)
of actual oil, which you can sell at any time you like later
(minus modest fees)? Thanks in advance,


------- old posts included just for fun

Author: buckaroobonzai
Subject: Owning oil more directly than w/stocks
Date: 10/1/04 12:11 PM

I was recently looking into buying oil more directly rather than through stocks. Speculating that the long term trend (think years, not months) is higher than the futures market expects, I checked out the long-dated futures. The benchmark oil contracts for 2008-10 predicts oil at about $35/bbl. However, I don't want to try to fit in a $35-40K contract (1 contract = 1000bbl) into my tiny taxable portfolio. The oil mini's for 500bbl only seem available for the forward 2 months.

Has anybody followed oil future options? I have purchased stock options for several years, but never for commodities. It seems like I could get in for $4-5 in a leveraged instrument without being marked-to-market which takes money in and out of my account at the end of the day based on that day's price movement. I'm assuming here that futures options are not marked-to-market. This is something I would expect to hold for 3-4 years and want as long-dated an option as possible.

Of course, I'm not so tempted to purchase right now. I'm expected some deflation in oil in the next few months, and waiting until December would open up a contract 12 months later than the current longest-dated contract.


Author: Imaginistics Big red star, 1000 posts Add to my Favorite Fools Number: 4797 of 9253
Subject: Re: Owning oil more directly than w/stocks Date: 10/2/04 11:52 AM
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Why not buy a mutual fund that will invest in such futures?

I looked at your links and yes, cost
per barrel of oil, back down to $30s in 2006 or 2007 sounds way too low to me too...Sure, lots of mutual funds won't want
to be aggressive with that...but before taking the much higher personal risk of playing the complicated game of futures, it seems
to me it's worthwhile spending some of one's personal
research time looking to see if some fund out there
already has plans for "significant" futures contracts betting
that oil will be much more than $30s in 2007, and if found,
then invest some in that fund...

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the title should say "buying shares in not buying physically" the oil
(and also avoiding options) just a paper/electronic Share of that what is being sought..tia.
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Just posted an update on my thinking in the oil and
gas forum

and reasoning behind investing and several options I've found.
(it may be another several months before I'm back online,
as noted in that post) Best to all.
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