Jasmine Birtles
Your money-making expert. Financial journalist, TV and radio personality.
How and Where to Buy Oil Stocks in the UK 2025
Ruby Layram
19th Mar 2025
Oil stocks have long been a go-to for investors looking to profit from the energy sector. Investing in oil allows you to gain exposure to an industry that literally keeps the world running! Whether you’re a beginner or someone looking to expand your portfolio, knowing where to buy oil stocks and how to invest in oil is essential.
In this guide, we’ll break down how to invest in oil, the best places to buy oil stocks, and what you should consider before putting any money on the line.
Read first: How to buy stocks in 5 steps
Why Invest in Oil Stocks?
Oil is one of the most valuable commodities in the world. Despite the rise of renewable energy, oil continues to be a critical part of the global economy. Here are a few reasons why investors are still keen on oil stocks:
- Consistent demand: The world still runs on oil, making it a crucial commodity.
- High dividend potential: Many oil companies pay out attractive dividends to shareholders.
- Inflation hedge: Oil prices tend to rise with inflation, making it a good store of value.
- Volatility equals opportunity: Oil prices fluctuate, which can create good trading opportunities.
How to Invest in Oil Stocks
Platform Name
What We Like
What We Don’t Like
Minimum Deposit
InvestEngine
The best ETF platform that offers zero commissions on stocks and shares, fully managed protfolios, and up to £4000 cashback for new ISA accounts.
Only offers ETFs, no access to cryptocurrencies
£100
XTB
Zero commission on stocks and shares, invest in ready-made portfolios for passive investing, access over 6000 assets
XTB does not provide access to cryptocurrencies
£1
eToro
Social trading, copy trading, free demo account, access to stocks and crypto
No pension options, high fees
$10
So, how can you invest in oil stocks in 2025? There are several ways you can get involved in the oil market:
1. Buying individual oil stocks
Investing directly in oil companies is the most straightforward way to get exposure to oil companies. Some of the biggest oil stocks in the UK include:
- BP (LSE: BP)
- Shell (LSE: SHEL)
- Harbour Energy (LSE: HBR)
These companies are major players in the oil industry and often pay dividends, making them attractive to long-term investors.
The process of buying individual oil stocks is the same as the process of buying any other stock. You sign up to a broker, search for the stock and execute an order.
2. Investing in Oil ETFs
If you don’t want to pick individual stocks, an exchange-traded fund (ETF) that focuses on oil companies can be a great option. Some popular oil ETFs include:
- iShares Oil & Gas Exploration & Production ETF
- SPDR S&P Oil & Gas Exploration & Production ETF
ETFs spread your risk across multiple oil companies, making them less volatile than individual stocks.
3. Buying Oil Futures and Options
For more experienced investors, trading oil futures and options can provide significant gains. These involve speculating on the future price of oil but come with higher risk.
Futures and options are a type of derivative asset – this means that you don’t own the underlying asset.
4. Investing in Oil Royalty Trusts
Oil royalty trusts own oil-producing assets and distribute profits to investors. These investments can provide high dividend yields but are subject to fluctuations in oil prices.
5. Purchasing Crude Oil Stocks
Crude oil is the natural, unrefined form of oil that you would find if you drilled into the ground!
If you’re looking for how to buy crude oil stocks, this usually involves investing in companies that focus on crude oil production, refining, and distribution. These can offer direct exposure to crude oil prices.
Where to Buy Oil Stocks in the UK
Platform Name
What We Like
What We Don’t Like
Minimum Deposit
InvestEngine
The best ETF platform that offers zero commissions on stocks and shares, fully managed protfolios, and up to £4000 cashback for new ISA accounts.
Only offers ETFs, no access to cryptocurrencies
£100
XTB
Zero commission on stocks and shares, invest in ready-made portfolios for passive investing, access over 6000 assets
XTB does not provide access to cryptocurrencies
£1
eToro
Social trading, copy trading, free demo account, access to stocks and crypto
No pension options, high fees
$10
Now that you know how to invest in oil, the next step is finding the best platform to buy oil stocks. Here are some top options:
1. Online Stock Brokers
Online brokers make it easy to buy oil stocks from the UK. Some of the best platforms include:
- eToro: Great for beginners with commission-free trading.
- Invest Engine: The best platform to buy Oil ETFs with zero fees and a beginner-friendly app.
- Interactive Investor: Good for long-term investors with a fixed monthly fee.
2. Traditional Banks and Investment Platforms
Some high-street banks and investment platforms also allow you to buy oil stocks. Examples include Barclays Smart Investor and HSBC InvestDirect.
If you want to keep things simple, contact your current banking provider to see if they offer oil investment options.
3. Through an ISA or SIPP
If you’re looking to invest tax-efficiently, you can buy oil stocks through a Stocks and Shares ISA or a Self-Invested Personal Pension. This allows you to shield your profits from tax.
Risks and Considerations Before Buying Oil Stocks
While oil stocks can be profitable, there are a few risks to be aware of:
- Volatility: Oil prices can swing wildly based on geopolitical events and economic conditions.
- Regulatory risks: Governments worldwide are pushing for cleaner energy, which could impact oil companies.
- Dividend cuts: While many oil stocks pay high dividends, they can be reduced during downturns.
It’s crucial to diversify your portfolio and not put all your money into a single asset class.
Should I Buy Oil Stocks in 2025?
The big question: Should I buy oil stocks this year?
The answer depends on your financial goals. If you’re looking for potential growth and dividend income, oil stocks could be a good fit. However, if you’re risk-averse, you might want to explore ETFs or other energy investments to reduce volatility.
Now that you know how to invest in oil and where to buy oil stocks in the UK, you can make an informed decision. Whether you go for individual stocks, ETFs, or even oil futures, the key is to research and understand the risks.
Are you interested in learning more about investing? Why not sign up to the MoneyMagpie bi-weekly Investing Newsletter? It’s free and you can unsubscribe at any time if you find it isn’t for you.
Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence. When investing your capital is at risk.
Leave a Reply