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Oil’s price movements are well known and frequently publicized.  Since the price of oil exhibits significant volatility, how can an investor profit no matter which way oil is headed?  Stock-Net has researched this and has some options for you.

First, there are several mutual funds that focus on natural resources, including oil.  A top natural resources fund is T. Rowe Price New Era Fund, PRNEX. This fund can invest in a variety of resources, including oil, metals, and other raw materials, and has a fairly low expense ratio of 0.70% annually.

If you want to play the short side of oil, consider the ProFunds Short Oil and Gas Investors fund, SNPIX.  This fund returns the inverse of the Dow Jones US Oil and Gas Index, and is up more than 6% so far this year.

ETF’s are also available for investing in oil.  The most well known is United States Oil, USO, which tracks the price of West Texas Intermediate crude.   If you want to play the short side of oil with an ETF, consider the Claymore MACROshares Oil Down Tradeable Shares fund, DCR.  This ETF tracks the inverse price of crude-oil futures, but has a relatively high expense ratio of 1.6% annually.   See the following chart for recent performance of these oil-related funds.

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