Top Oil ETFs to Buy for Singapore Investors

Key Takeaways for Singapore Investors

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Geopolitical tensions—especially in the oil-rich Middle East—are major drivers of crude oil prices, often causing sharp volatility and supply concerns. For Singapore, a major refining hub reliant on oil imports, this volatility can trigger inflation but also create opportunities for investors to hedge and profit.

How to invest in ETFs in Singapore, including Oil ETFs? This guide covers energy market trends, oil ETF strategies for Singapore investors, and how to track institutional "smart money" flows to make more informed investment decisions.

Oil ETF Investment: Strategies for Singapore Investors

For Singapore investors who have access to U.S. markets via brokerage platforms such as Moomoo SG, Exchange Traded Funds (ETFs) are one of several ways investors may obtain exposure to the energy sector. However, oil ETFs vary greatly in structure and performance.

Investors can adopt a diversified allocation strategy based on three timelines and goals:

• Short-Term: Focus on price swings driven by news, using liquid futures-based ETFs and leveraged products.

• Medium-Term: Target sustained trends while avoiding roll yield decay.

• Long-Term Strategies: Invest in energy sector ETFs and major oil companies for dividends and stable returns. Categorizing capital into these buckets helps navigate oil market cycles.

Best Oil ETFs and Assets to Consider for Singapore Investors

Now that we have established the strategic framework, let's break down the specific assets that fit into each category. The following products represent the most liquid and widely traded instruments for gaining exposure to crude oil and the broader energy market.

>> Use Moomoo's Oil ETFs Investment Theme; trading volume is recommended as one way to screen for ETFs, including those with relatively higher trading liquidity. ETFs with higher trading volumes may experience narrower bid–ask spreads, which can help reduce potential slippage and support more efficient trade execution. This may be relevant for investors considering both shorter-term trading strategies and longer-term exposure to the energy sector.

Crude Oil Futures ETFs: Built for Short-Term Trading

These ETFs do not hold physical oil; instead, they hold oil futures contracts. They are heavily impacted by the shape of the futures curve—specifically contango (when future prices are higher than spot prices), which can erode returns over time. Therefore, these are trading tools, not long-term investments. Understanding these risks is essential before choosing any of the top ETFs to buy in Singapore for oil exposure.

United States Oil Fund (USO)

United States Oil Fund LP (USO) is arguably the most famous and highly traded oil ETF in the world. It is designed to track the daily price movements of West Texas Intermediate (WTI) light, sweet crude oil delivered to Cushing, Oklahoma. It achieves this primarily by holding near-month WTI futures contracts.

Because USO constantly has to sell expiring front-month contracts and buy the slightly more expensive next-month contracts (in a normal contango market), it suffers from "roll decay." Over a year, even if spot oil prices are flat, USO will likely lose value. It is strictly for short-term tactical plays.

ProShares Ultra Bloomberg Crude Oil (UCO)

ProShares Ultra Bloomberg Crude Oil ETF (UCO) is a leveraged ETF designed to deliver 2x (200%) the daily performance of the Bloomberg Commodity Balanced WTI Crude Oil Index. If WTI crude rises by 2% in a single day, UCO is designed to rise by roughly 4%.

Leverage works both ways. Furthermore, due to the mathematics of daily compounding (often called "beta slippage" or "volatility drag"), holding UCO for longer than a few days in a volatile, choppy market will lead to significant value erosion, even if oil prices eventually trend your way.

ProShares Short Bloomberg Crude Oil (SCO)

ProShares UltraShort Bloomberg Crude Oil ETF (SCO) is an inverse ETF designed to deliver -2x (-200%) the daily performance of its underlying WTI crude oil index. If oil prices fall by 2%, SCO should rise by 4%.

If you want to hold an asset for years rather than days, you should step away from futures contracts and look at the companies that extract, refine, and sell the oil.

Energy Select Sector SPDR Fund (XLE)

Energy Select Sector SPDR Fund (XLE) tracks the Energy Select Sector Index, providing broad exposure to the largest US energy companies in the S&P 500. It is heavily weighted toward multinational mega-cap oil integrated companies, with ExxonMobil (XOM) and Chevron (CVX) typically making up over 40% of the fund's total weight.

Occidental Petroleum Corp (OXY)

Occidental Petroleum (OXY) is one of the premier independent exploration and production (E&P) companies, holding vast, highly profitable acreage in the Permian Basin.

To trade the ETFs above effectively, you must monitor the correct underlying benchmarks. The global oil market relies on two primary grades of crude oil for pricing.

West Texas Intermediate (WTI)

WTI is a light, sweet crude oil (meaning it has low density and low sulfur content), making it ideal for refining into gasoline. It is landlocked, priced at the massive pipeline and storage hub in Cushing, Oklahoma.

When you trade USO, UCO, or SCO, you are tracking WTI. It is highly sensitive to US domestic supply data (like the weekly EIA inventory reports) and North American rig counts.

Brent Crude

Brent crude is extracted from the North Sea. Like WTI, it is light and sweet, but slightly heavier. Crucially, it is waterborne, meaning it is easily loaded onto tankers and shipped globally.

United States 12 Month Oil Fund (USL)

While USO buys only the closest expiring futures contract, USL spreads its exposure equally across the next 12 months of WTI crude oil futures contracts. This is the "Goldilocks" ETF. By spreading its holdings across 12 months, USL drastically reduces the negative impact of contango and roll yield decay. If you believe oil prices will rise steadily over the next 6 to 12 months due to structural supply deficits, USL provides a much safer holding experience than USO, capturing the price increase without bleeding capital to monthly contract rolls.

Beyond Oil Investing: Track "Smart Money" in the Future

Warren Buffett’s recent aggressive accumulation of oil stocks has once again put the energy sector in the spotlight. As one of the most influential investors in the world, his moves in companies like Chevron (CVX) and Occidental Petroleum (OXY) are closely watched by market participants. This raises a key question: How can retail investors track these "smart money" flows and copy their winning strategies?

Moomoo offers two key tools:

1. "Celebrity Holdings Insights": This feature allows users to monitor the real-time position changes of top investors like Buffett. For example, data shows that Buffett increased his holdings in CVX as early as Q4 2025, and both CVX and OXY remain among his top six largest holdings. By tracking every quarterly adjustment, retail investors can stay aligned with "smart money" without falling behind key moves.

2. Institutional Tracker: Shows sector rotation and short interest signals, helping time macro trends and manage risk (e.g., hedging UCO with SCO during heavy institutional shorting). By leveraging these tools, investors can act on "smart money" signals with conviction.

The Complete Oil Investment Loop with Moomoo SG

By integrating these tools, Singapore investors can formulate a complete, closed-loop investment process:

1. Identify the Catalyst: Observe geopolitical headlines (e.g., US-Iran tensions) driving Brent (BZ) and WTI volatility.

2. Verify with Smart Money: Open your App and check the Institutional Tracker. Are hedge funds actually backing this rally with capital, or is it just retail noise? Check Celebrity Holdings Insights to see if long-term players are accumulating assets like OXY, CVX or more.

3. Execute the Right Product: Based on the data, select instruments that align with the corresponding market logic. For short‑term volatility driven by institutional activity, products such as USO or UCO may correspond to such trading scenarios. For multi‑year structural allocation in line with a potential supercycle, products like XLE may fit longer‑term positioning strategies.

Read More: ETFs vs. Individual Stocks: Which is Better for Singapore Investors?

Conclusion

Investing in oil from Singapore offers a unique opportunity to turn global volatility into portfolio growth. The key is to avoid treating all oil investments the same. By understanding the mechanical differences between futures-based trading tools like USO and UCO, medium-term vehicles like USL, and long-term equity builders like XLE and OXY, you can tailor your approach to the exact market conditions.

Furthermore, by moving beyond basic news consumption and actively utilizing tools like Celebrity Holdings Insights and the Institutional Tracker on Moomoo SG, you elevate your strategy from reactive to proactive. Tracking the smart money allows you to invest with the confidence of the professionals, right from your mobile device.