Indian investors can benefit from higher oil prices

On 20 April 2020, the price of crude oil turned negative for the first time in history. A brutal combination of weak demand due to worldwide lockdowns and producers unwilling to reduce output led to a scarcity of storage capacity. The situation turned so bad that oil producers were actually willing to pay buyers to store excess oil, hence the negative prices.

Since then, crude oil prices have bounced back strongly over the past few months to cross $60 per barrel on 17 February.

In the investing world, oftentimes, price gains happen too slowly to notice, whereas setbacks happen too quickly to ignore. The story of oil prices since April 2020 has been such as well. Over the past 10 months, the price of oil has been steadily increasing, largely unnoticed. Today, we are going to dive into how one can get exposure to oil as an investment.