How to benefit from this as a retail investor ?
Now not all investors can trade oil futures contract or even have the capacity to store them. So how can retail investors benefit from this? While I came to think about this and researched, I found that one of the best and easiest ways to play this trend out is to invest into tanker stocks. The tanker owner companies will have higher charter rates as a result of increasing demand on the usage of oil tankers as a storage and transportation.
Dealers who has secured a $10 spread between one month contracts can fill up a Suezmax tanker with a million barrel crude oil. After paying out the lease to the tankers, he can still double his money. The return will of course vary depending on tanker charter rates, length of the contract and amount of the spread. You can look