Jasmine Birtles
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How to Invest in Oil in 2025
Ruby Layram
24th Jun 2025
Investors around the world are rushing to buy oil right now, and for understandable reasons. With global tensions rising, supply staying tight, and demand holding strong, oil is suddenly back in the spotlight.
Of course, the recent interest in oil is partly driven by tensions that are devastating. And it is important to assess the ethics behind investing in industries that are so closely tied to conflict.
However, oil as been an attractive investment for years, and it is important to understand how to invest in the industry safely to minimize the risk of doing so.
In this guide, we’ll walk you through everything you need to know about investing in oil this year, including how to buy oil ETFs, oil stocks, and companies that keep the whole industry running behind the scenes. We’ll also cover why oil prices are expected to rise, what’s fuelling the momentum, and what to watch out for before you get started.
Why Oil Could Surge in 2025
If you’re reading this, you may have seen the headlines claiming that “Oil will SURGE in 2025!”. It’s no secret that investors have high hopes for the commodity right now. But, is there any truth behind these headlines?
Escalating tensions in the Middle East, especially involving the Israel-Iran conflict and threats to the Strait of Hormuz, have already pushed oil prices above $76/barrel. JPMorgan warns that a serious disruption could send prices toward $120–$130, and Goldman Sachs has issued a similar prediction.
Even without geopolitical shocks, Opec+ has been cautious about overloading the market, and global demand for oil remains strong. The IEA forecasts supply growth will struggle to keep up, leaving potential for price spikes.
With inflation still lingering and growth fragile, oil often benefits from both. Higher costs for goods often translate to higher oil prices, which in turn keep inflation pressures alive.
How to Invest in Oil in the UK 2025
Investing in oil doesn’t mean buying up barrels and storing them in your shed! There are 3 main ways to invest in oil as a UK investor.
Here’s an overview of your options.
Invest in Oil ETFs or ETCs
Oil ETFs or ETCs are a type of fund that provides exposure to oil-related companies, without needing to pick individual stocks.
This is one of the most ‘beginner friendly’ options because its simple, low-cost and there are numerous platforms that you can use.
- Choose a trading platform: Sign up to a UK-friendly investment platform like Hargreaves Lansdown, Interactive Investor, or Trading 212.
- Search for oil-focused ETFs or ETCs: For direct exposure to oil prices (like Brent Crude or WTI), look for ETCs such as WisdomTree Brent Crude Oil or WisdomTree WTI Crude Oil. For broader exposure to oil companies, consider ETFs like XLE, VDE, or iShares STOXX 600 Oil & Gas UCITS ETF.
- Review the fund details: Check the fund’s holdings, fees, and performance history. Some use oil futures contracts, so make sure you understand how that works.
- Place an order: Deposit funds into your investment account and fill out the order form. The ETF/ETC will appear in your portfolio within a few minutes.
Buying Shares in Major Oil Companies
Another way to invest in oil in the UK is to buy shares of oil companies. This is a good option if you want exposure to a particular company. However, it requires a lot of research and manual portfolio management.
- Open an investment account: Platforms like Interactive Investor, Trading212, or eToro offer access to UK and international shares.
- Search for oil companies: Popular choices include: Shell (SHEL) and BP (BP). These are UK-based companies with regular dividends.
- Compare company profiles: Look at dividend yields, earnings reports, and how they’re handling the energy transition.
- Buy your shares: Decide how many shares to buy, confirm the trade, and wait for the shares to appear in your portfolio.
Investing in Oilfield Services & Infrastructure
Another way to invest in oil is to invest in the companies that are involved in production and distribution. These companies offer wider exposure to the oil market but, their performance may be affected by factors outside of oil’s supply and demand.
- Sign up to a platform with US stock access: A lot of these companies are listed on the US stock market so you will need a platform that offers US access. Saxo Bank is a good example.
- Look beyond the oil producers: Consider the companies doing the behind-the-scenes work such as leaders in drilling, extraction, and oilfield services.
- Consider midstream infrastructure companies: These handle pipelines, storage, and transport. You can access a basket of these via the Alerian MLP ETF (AMLP).
- Evaluate the company: These firms tend to benefit from rising oil activity without owning the oil itself. However, it’s important to evaluate all metrics that could affect the price before you buy.
- Place your investment: Decide how much to invest and fill out the order form.
For less experienced investors, investing in oil ETFs is probably the ‘easiest’ option. If you’re unsure, it might be worth speaking to an expert before you put any money on the line.
Risks to Keep in Mind Before You Invest
Before you invest in oil, it’s important to understand some of the risks involved.
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Volatility: Prices can surge, but they also crash (remember 2020!)
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Geopolitical madness: Tensions in the Middle East can cut supply or spark investor panic.
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Energy transition: Long-term decarbonisation efforts could weaken oil demand.
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Regulatory risk: New taxes or legislation (e.g. carbon levies) can hit revenues.
Final Thoughts
There are numerous factors that could cause the price of oil to go up in 2025. In particular, tensions in the Middle East could put restrictions on supply, causing the price to spike.
As with any investment, it is important to do your research before you make any decisions. And in this case, consider the ethics of investing before putting any money on the line.
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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. Companies listed above are not necessarily endorsed by Money Magpie. When investing your capital is at risk.
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