Direct investment:  Direct investment in oil involves buying and selling physical oil or oil futures contracts. Physical oil is typically bought and sold in large quantities, and it is not practical for most individual investors to buy and store physical oil. Oil futures contracts are agreements to buy or sell a certain amount of oil at a predetermined price on a future date. Oil futures contracts are traded on exchanges, and they can be a good way for individual investors to speculate on the price of oil.
Indirect investment: Indirect investment in oil involves investing in companies that produce, refine, or distribute oil and gas. This can be done by buying stocks or bonds in these companies. Investing in oil companies can be a good way to gain exposure to the oil market without having to buy and sell physical oil or oil futures contracts.