Oil. what is the best product to position in?

Discussion in 'Trading' started by barnetda, Feb 20, 2008.

  1. IS the oil ETF a liquid way to position in oil?

    Is it the oih? or is the USO more liquid?

  2. Brandonf

    Brandonf ET Sponsor

    Either one is fine. Natural Gas is also looking strong. (UNG)
  3. thanks very much.
  4. promagma


    The oil futures are in contango, and USO is suffering from it. I am in DBC, which has been doing well by rolling forward to the cheapest contract, and has 35% oil, 15% heating oil, and some agriculture and metals.

    Check out this web site and the "Hard Assets University"

  5. excellent web site. many thanks.
  6. Oil futures are NOT in contango, they are currently in backwardation, the front months are more expensive than the back months.

    Just buy the futures, don't screw around with ETFs and their fees. Buy the 2nd to front month and roll the contract every 2 months, its not that hard to do.
  7. I use Scottrade and Think or Swim. Neither offer the facility to trade oil futures.
  8. promagma


    Oops, you are right, no more contango. Bottom line - it adds another variable when playing USO. Agreed that futures are best.
  9. That means it's time for a new broker
  10. Just realised i still have an account open with optionsxpress.

    Looking at their site they offer a variety of futures contracts including energy.

    Looks excellent.
    #10     Feb 20, 2008