For the love of… Oil just hit $115 a barrel.
All thanks to tighter global supply, with Russian output impacted by sanctions.
Plus, as noted by CNBC, “Ukrainian President Volodymyr Zelenskyy called for more pressure on Russia from other countries as the conflict appears to be entering a stalemate.” And, the American Petroleum Institute just said crude stocks fell by 4.3 million barrels for the week ended March 18, according to Reuters.
But wait, it gets worse.
Crude oil exports from Kazakhstan’s CPC terminal were shut down after damage caused by a major storm, added CNBC. That pipeline accounts for about 1.2% of global demand, and could be completely stopped for up to two months.
Then there’s summer driving season, which is just around the corner. With all of that, oil prices could head even higher, near-term. So, how do we trade the news?
One way is to trade dividend-paying oil stocks, like Exxon Mobil (XOM).
At the moment, XOM carries a dividend yield of 4.3%. Also, after pulling back from about $90 to $77.71, the stock has started to pivot higher again. Should oil prices continue to gush higher, we’d like to see XOM test $90 again shortly.
Another way to trade higher oil prices is with an ETF, such as the SPDR Energy Select Sector ETF (XLE), which provides exposure to companies in the oil, gas and consumable fuel, energy equipment and services industries, as noted by State Street SPDR.
