No Easy Way to Invest in Crude Oil in Singapore

Adam Khoo generously shared the various ways to profit from panic in crude oil. He mentioned oil ETFs (e.g., USL), energy sector ETFs (e.g., XLE) and oil companies stocks. Wifey and I do not like to transfer our money to US online trading brokerages. We have learnt our lesson. We ever put our money in USD and lost a few thousand dollars just because of exchange rate. Not worth it at all.

I looked around and discovered that there is no similar crude oil-related ETFs offered in SGX. The closest is an energy ETF from Lyxor but the volume is too thin for my liking. We can of course buy crude oil using CFDs. However, We are going to be in this for the long haul, well, at least for 5 years. The daily holding cost may kill us. How about unit trusts? Fundsupermart has this Blackrock World Energy Fund A2 SGD. Unit trusts have sale charge and annual management charge and are not ideal.

Seems like the best option is to buy SG stocks that are related to crude oil, like Sembcorp,  Keppel Corp, Ezion and Nam Cheong. Buying company shares gives dividends - another plus. Given current climate, Ezion and Nam Cheong are almost becoming penny stocks. Sembcorp and Keppel Corp are being snooked by Brazil. Haha. Seems like no risk no extraordinary profit...So is it back to textbooks to analyse balance sheets and income statements for the companies?

photo credit: Pumpjack via photopin (license)