Oil hit a six-and-half-year low on Wednesday after inventories numbers came in much higher than Wall Street analysts and investors were expecting. While many arguments can be made for why oil will continue to decline or rise in the coming months, the reality is, we just don’t know what is going to happen.
But regardless of how you fell the commodity will perform in the coming months; there is no shortage of ways to make money in the oil market. You could go long or short the commodity itself, go long or short exploration and production giants like Exxon Mobile (XOM) or Chevron (CVX), make a play with smaller oil and gas producers, invest in oil and gas MLP's, the pipelines company's, or even just the equipment suppliers.
In most of these instances though, you will be stuck cherry picking individual company's and trying to figure out which ones are best positioned to benefit from higher oil prices or attempting to determine which ones will be hurt the greatest if oil prices continue to decline. But one way to make this process easier, is to simply buy an ETF that bundles a number of those companies together and either takes a bullish or bearish position on them.
And since oil has recently been falling, let's take a look at a few ETF's that are built to help make you money from declining oil prices. Continue reading "3 ETF's To Buy If You Think Oil Will Continue To Decline"