How To Buy Oil Shares In South Africa

Below is How To Buy Oil Shares In South Africa

Crude Oil Futures and Options are Derivatives Contracts that give investors exposure to the international price of crude oil. This product serves as a key international pricing benchmark and can be used as an effective hedging tool to manage local users’ diesel price risk. Contracts are settled in rands and can easily be accessed through JSE Commodity Derivatives Members. ​

Who is this for?

These contracts are the world’s most actively traded energy product. Typically, consumers and producers of crude oil manage crude oil price risk by buying and selling these contracts. Crude Oil Futures and Options are also traded by speculators, who assume the price risk that hedgers try to avoid in return for a chance to profit from favorable price movement.

Features

Play an important role in managing risk in the global energy sector because they have the most liquidity, most customers and most transparency.

Easily accessible with a contract traded in rands.

Enable identification of short- and long-term price and volatility patterns.

Provide investors with the opportunity to hedge or gain exposure.

Oil is a highly volatile commodity and sensitive to socio-economic and political factors, which makes investing in oil riskier than many other investments.

How to get Crude Oil Futures and Options

To access Crude Oil Futures and Options, investors need do is register as a client with an authorized member firm, deposit the required initial margin and sell or buy according to their needs.

Qualifying factors

No limits apply to individuals, foreigners, or corporate entities

Pension funds and long term insurance companies subject to their 25% foreign allocation limits

Asset managers and registered collective investment schemes subject to their 35% foreign allocation limits

For the full details relating to qualifying factors, speak to your broker​.

How do I buy oil shares in South Africa?

To access Crude Oil Futures and Options, investors need do is register as a client with an authorized member firm, deposit the required initial margin and sell or buy according to their needs.