Update as of
5/2016: Barron’s prediction is mostly wrong as oil has passed $45 per barrel.
It is due to unexpected events such as the fire in Canada.
I bought OIL in Jan. 19, 2016 (one of my purchases in this
period). I expected to increase in price by 50% as the oil does, but it only
increased 25%. What happened to half of my profit? Consider USO as an
alternative to OIL.
Expecting oil price will appreciate, it is better to bet on
oil service companies instead of OIL. Here is an article
on how to play the oil commodity and a site on energy ETFs. I have the
annualized returns of energy ETFs and CVX from Jan. 19, 2016 to May, 12, 2016.
|
Symbol
|
Description
|
Ann. Return
|
|
OIL
|
Crude oil
|
33%
|
|
USO
|
US Oil Fund ETF
|
112%
|
|
OIH
|
Oil services
|
80%
|
|
XOP
|
SPDR Oil & Gas
|
138%
|
|
IYE
|
iShr DJ US Energy
|
75%
|
|
XLE
|
S&P Energy
|
76%
|
|
CVX
|
Chevron
|
81%
|
|
Average
|
|
85%
|
|
SPY
|
|
32%
|
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