Definition - What does Oil Stocks mean?
Oil Stocks are a category of stocks that deal with oil and the petroleum industry. There are three major types of Oil Stocks, i.e., oilfield services stocks, refining stocks and master limited partnerships. Investors can make an investment in oil as a commodity to gain indirect exposure of energy-related equities. If the investors want to undergo direct buying method then they can purchase from oil futures or exchange traded funds (ETF). However, oil futures are highly volatile and have a high degree of risk while investing in them.
Petropedia explains Oil Stocks
When it comes right down to Oil Stocks, every investor starts thinking of Chevron Corporation, Exxon Mobile Corporation, and Royal Dutch Shell Plc. After all, they are among the top rated oil organizations. Nevertheless, there are many other Oil Stocks organizations that also benefit in the long run. Oil markets are confusing as they face huge price fluctuations on a daily basis. Regardless of the reason, investors who want to invest and capitalize on energy price fluctuations have a plenty of options, for instance, investors check current prices of oil from exchange traded note (ETN) or exchange traded fund (ETF).