As the price of petrol soars is oil a slick investment

As the price of petrol soars, is oil a slick investment

 

As the price of petrol soars, is oil a slick investment? Iran crisis and Venezuela collapse push crude to a four-year high

 


The price of oil is soaring and experts say it could be the right time for investors to take another look at the black stuff

The threat of US sanctions against oil-rich Iran and a collapse in production in Venezuela – which has the world’s largest reserves – has pushed Brent crude up to a four-year high of $77 a barrel

It marks a remarkable turnaround, shooting up from just below $30 a barrel two years ago

Global supply is expected to fall if the US presses ahead with trade sanctions on Iran, which experts say will push up the price even further

 


Ashley Kelty, an oil and gas research analyst at Cantor Fitzgerald, said: ‘I think we could get to $80 a barrel within days

In the medium-term we could see $90 a barrel.’ And Bank of America bullishly predicts it will reach $100 next year for the first time since 2014

Rising prices makes oil, unloved by investors for so long, a more attractive proposition. So how can you take advantage

Before answering, you need to be sure that you want your money in oil, as the past few years have shown it can be a rollercoaster for investors

 


And while all of the signs indicate the price will continue to rise, it is by no means certain

Tom Becket, chief investment officer at Psigma, said: ‘You have to believe supply is going to become increasingly tight if you want to take a positive view on oil at the moment

If that is the case, there are a number of options on offer, but one of the easiest is to buy shares in oil firms such as BP and Shell

While the oil price has rocketed by more than 58 per cent in the past year, the share prices of BP and Shell have failed to keep pace. BP’s have risen 22 per cent in that time, while Shell’s are up just 18.5 per cent

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