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How Do Oil Investors Make Profit

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How Do Oil Investors Make Profit

When we say “oil”, it is unlikely you would think of cooking oil. For most of us, that word brings images of moving vehicles and machinery, refineries, and natural gas plants. Most times you can trace the wealth of some of the richest individuals to crude oil and the reason is that crude oil is the blueprint for most combustion-based fuels. 

In fact, it is said to be the most traded commodity worldwide. Energy is integral to any line of business, so a change in the price of oil affects everything. From transportation to cost of production of various goods, and even the cooking gas we use at home. You can see how vital it is to humans at large and why we can’t do without oil and oil investment at the moment.

But, of course, we are looking for alternative energy sources in a bid to reduce greenhouse emissions. Like the case of electric cars; right now, there are countries with more electric vehicles than gas-powered ones. But it will take decades more for us to successfully phase out gas-powered cars. Most likely, it won’t even happen in our lifetime. Even at that, crude oil will still be used to power planes, ships, rockets, submarines, and many other machines. For now, this commodity isn’t going anywhere.

So how do you join in and invest? By understanding this we would also know how oil investors make a profit. Below are the common methods by which it is done.

Oil Stocks

A stock when it comes to investment refers to shares of a company. When you own a share of any company, when they lose money or make a profit, it would reflect in the value of the share. You don’t want to invest in any random firm that comes your way. This is why it is important to perform extensive research, especially when a lot of money is involved.  

Hike in oil prices affects the economy at large, visit https://www.cnbc.com/ to learn more about how to spot the signs. Your best bet when investing might be to use a mutual or index fund. Don’t know what that is? Let us help you.      

Oil mutual funds

The way a mutual funds works is, you’re given access to a collection of stocks which you can buy at once. This is especially useful for investors who wish to diversify their portfolios. If you were to invest in a specific type of fund, you would be limited to the profit and losses of that fund type. Using oil mutual funds diversifies your portfolio, therefore reducing risk. 

Oil Futures

The way futures work is that both parties agree on a pre-set price for a pre-set amount of oil. Unlike mutual and index funds, you’re not trading the actual oil when trading futures. You’re trading the contract in the hopes that when oil prices rise your contract becomes more valuable. When this happens, you can sell the contract for a profit.

It’s the same way if oil prices fall, the value of the contract reduces resulting in loss of money. It is more advanced than oil mutual funds and should be done after performing thorough research. 

Commodity ETFs and ETNs

ETFs (exchange-traded funds) are another common way to invest in the oil market. It is normally traded on an exchange that is easily accessible to the public. This makes it perfect for investors who aren’t particularly wealthy. That’s right, investing in oil isn’t just for the rich and affluent. In fact, if you have up to $40 you can definitely find an ETF share to buy. Click here to learn more about ETFs.

In essence, your Exchange provider invests in crude oil themselves and you can piggyback on them. Allowing you to enter a powerful market with little capital. They’re particularly useful for people who are interested in a short-term investment setup.

Final Thoughts

After reading this article, it is easy to see why crude oil is a strong asset to invest in. This commodity is so vital to us that cutting off its supply in a country can cripple it. Limited funds shouldn’t deter you from investing in this commodity. With the use of ETFs, you can buy a retail share as low as $30.As with all financial ventures adequately researching the type of investment you want to enter is crucial to success. 


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Great Resignation: How to beat Great Resignation with Employee Experience

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Great Resignation: How to beat Great Resignation with Employee Experience

Great Resignation

The world was forever changed in late 2019 when the Coronavirus made its appearance. Countries shut down. Streets were empty. Companies held as best they could or were forced to close their doors. Many would believe that such an event would lead to employees wanting to hold on to their jobs. Typically, large numbers of resignations signify a good economy and abundant availability of jobs allowing people to follow passions instead of necessity.

Post-COVID employee experience is much different.

For two years, and some a bit more, people were forced to spend time alone, realigning the importance of human interaction, well-being, and happiness. This drive for more personal fulfilment, satisfaction, and growth stemmed The Great Resignation.

No longer were employees basing staying with jobs out of need or comfortability. Now they look for work-homelife balance, greater satisfaction and better employee experiences, or they will leave. So how do companies face this? How do they increase employee retention and improve employee engagement?

The secret is in employee experience.

Holistic Employee Experience

There are, of course, no quick fixes for the Great Resignation, small wins can motivate and drive longer-term goals for your organization. The Great Resignation—and COVID by extension—taught many employees that life meant so much more. That the daily grind working in offices with long commutes, stress, lack of rest or relaxation, and the hustle of strenuous work weeks while normal was not conducive to happiness and mental well-being.

But this shift can be used as a blueprint for better employee experience!

Companies who work on being human-centric in ideals, strategies, and decision-making can improve greatly their chances of stemming mass exodus. Post-covid employee experience is now the new golden standard, and it looks at taking a more comprehensive and holistic view of experiences.

How can you be more holistic and how does it help?

  1. Think beyond probationary periods – Your employees are more important than the first 30, 60, or 90 days of employment, and yet many companies stop professional development and training after these dates. Normalize career growth, evaluations, employee 360 reports, and feedback loops to keep learning and advancement in the scope of your employees. While doing this, you’re also keeping your strategies and Key Performance Indicators—KPIs—fresh as you go.
  2. Communication is key – Talk to your employees about what they need, want, desire, and what their ambitions may be. Learn your people like you want them to learn your company. With transparent and open communication, you are engaging with your employees and creating an environment of consistency, openness, and inclusion—aspects employees’ desire.
  3. Employee-centric Corporate Culture – It may seem like the best idea is to center your company culture around the company’s values, vision, and strategies, but this is only half the battle. Integrating employee experience into the fabric of company culture ensures the company is as focused on their employees’ happiness as their own. It creates a bond to grow engagement, which has an effect on employee satisfaction and experience. As these rates increase, so to can employee retention numbers and customer experiences.
  4. Life and work-balance Erasure – Should your employees have to ask for more work-life balance? No, they shouldn’t. When built directly into work environments or expectations, it becomes something standard instead of something to be sought after. Examples of this could be:
    1. Flex hours
    1. Unlimited PTO
    1. Work-from-home or hybrid offerings
    1. Expanded benefits to include mental health and free resources
    1. Altered work hour schedules

Rise of Human Experience

Human Experience is a viewpoint that blends aspects of customer experience with employee experience, important in a post-COVID world. Instead of viewing them as separate entities entirely, companies can connect metrics and measurements of both to view a more comprehensive experience. Employees are customers—or potential ones—and as such, so too can customers become employees. With this view, it refocuses employee experiences in direct answer to the needs stemming The Great Resignation.

Ways you can use CX strategies within EX:

  1. Employee Journey Mapping – Like in customer experience, companies can work on mapping journeys for positions within the company overall, building in professional development and growth from the outset. They can then alter these journeys through personalization when an employee fills that role.
  2. Monitoring metrics – connect goals, milestones, and trajectories with metric directly linked to KPIs. Think employee net promoter score (eNPS), employee experience (EX), employee satisfaction (ESAT), and employee engagement (EE), for example, as they can correlate with operational success as well as customer success with your organization.
  3. View of employees – view your employees with the importance you view your customers. You cannot survive without either, and just as you court customer loyalty for more profitable relationships, so to can employee relations boost revenue, growth, and expansion.

Remote and Hybrid Work

One of the lasting effects of COVID was the desire to work from home or have the flexibility to. According to Gallup, nearly half of full-time working Americans—45%—are still working remotely.  White collar workers have even higher percentage, coming in at 70%. After the shutdown, many leaders were surprised to find employees still wanted to work remotely. The Pandemic exposed an internal need for conducive work environments and flexibility.

The office and all it entailed wasn’t as attractive as some leadership believed.

It was agile leadership who switched to maintaining remote or hybrid options who won out against competitors. Record job openings only further highlight how living is more important, and work can no longer be focused on only paying bills. Organizations who shift better with their employees retain talent better.

Remote work is not the only fix, but it does show how views of work’s place have vastly changed.

Act on Meaningful Feedback

Closing the loop between you and your employees is more important than ever before. Simply hearing them is not enough. Active, empathetic listening pair with actions on a consistent basis is the wining combination. Employees not only want to know they are heard but that their input is valued.

Regularly checking in with your employees, and not only attaching it to their performance, creates a culture of partnership.

Ways to gain meaningful feedback to inspire data-driven action:

  1. Employee 360 Review [LN1] [SP2] – not to be confused with an employee evaluation, the 360-degree review is a way for all employees to gain feedback from peers, subordinates, and managers to assist employee self-evaluation.
  2. Pulse checks – a powerful anonymous survey tool. Pulse checks are in between annual reviews and keep the feedback coming for HR initiatives, but it can also inform business strategies that are employee-focused as well.
  3. Surveys – From satisfaction to engagement, the best thing you can do is ask your employees. Working from assumptions can lead you down costly mistakes. By asking directly you can get their true opinions—think of using anonymity to influence candid responses.

Final Thoughts

The biggest takeaway from this is: employee experiences is an important part of operational success. The evolution of its importance and what it means cannot be discounted. Doing so can led to higher employee turnover rates and you won’t retain your best talent. As employee experience continues to change, the forward-thinking companies with innovative leadership will make it to the top.


 [LN1]Would it be okay to tag our template here?

Yes, we can [SP2]

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