Five Ways To Buy Crude Oil Now

Over the last couple years, crude oil has been a devastating commodity to be involved in. While the consumer might be feeling relief at the gas pump, the companies and employees that deliver energy are hurting badly. According to Wolf research, nearly a third of all American oil-and-gas companies could face bankruptcy or restructuring through 2017. As 2008 remains fresh in the mind of traders and investors, the fear of bankruptcies and contagion has dragged down stock prices of nearly every industry.

However, we could be coming to a turning point. The price action of crude over the last two days has been overwhelmingly positive, with oil rallying over 16% from the Wednesday low. Catalysts for the move include the following: bad inventory report being priced in, favorable OPEC chatter, and too many shorts sellers leaning on the trend.

Get long with these ETFs

United States Oil Fund (USO – ETF report) is an ETF that reflects the performance of the spot price of West Texas Intermediate (WTI) light, sweet crude oil. This ETF will move up and down with the price of crude and give an investor a liquid way to get in and out of the oil market. There is a .45% expense ratio for the fund.

Velocity shares 3X long crude oil (UWTI – ETF report) is an ETN composed of WTI futures contracts that will move three times the daily move of crude oil. For the aggressive investor, this is the way to capture an upside move in crude oil. However, when crude moves lower, this instrument moves three times lower then USO would.

Stocks

The companies below will benefit in a rising crude oil environment, as the recent slump in energy stock prices is overdone. Investors in these stocks will benefit from higher oil prices, which will help them perform fundamentally better.

Sunoco (SUN – Snapshot Report)

 is a wholesale fuel distributor and a Zacks Rank #2(Buy). Sunoco separates itself from other companies exposed to oil and gas prices with their convenience store fuel outlets.