If you need gas for your car, you may want to fill up now.
Oil prices are up more than $8 a barrel at the moment, as Russia bears down on Ukraine. While the increase hasn’t hit gas prices just yet, it will.
While the International Energy Agency will release 60 million barrels from global reserves to help cool off supply issues, according to CNBC, the situation could get far worse.
“The situation in energy markets is very serious and demands our full attention,” IEA executive director Fatih Birol said in a statement. “Global energy security is under threat, putting the world economy at risk during a fragile stage of the recovery.”
Unfortunately, $106 oil may not be the worst of it.
There’s also fear the war could send crude to $130, even $150, near-term. Coupled with tight crude supply with growing demand, and we’re running into a severe problem.
In addition, “The oil market is heading for simultaneously low inventories, low spare capacity and still low investment,” Morgan Stanley analysts wrote in a research note, lifting their price forecast for the summer quarter by $10 a barrel, to $100 for Brent and $97.50 for West Texas Intermediate,” as noted by The Wall Street Journal.
The only good news – the stocks and ETFs we’ve mentioned are rocketing higher.
Those include:
SPDR Energy Select Sector ETF (XLE)
When we first highlighted the XLE, it traded at $52.70. It’s now up to $71, and could be headed to $75 near-term unless oil prices run.
The XLE ETF provides exposure to companies in the oil, gas and consumable fuel, energy equipment and services industries, as noted by State Street SPDR. Not only does an ETF allow for diversification, you can buy it for less.
Invesco DB Oil Fund (DBO)
DBO traded at $13.85 when we first mentioned it.
It’s now up to $16.27, and could push higher with oil prices. This ETF seeks to track changes, whether positive or negative, in the level of the DBIQ Optimum Yield Crude Oil Index Excess Return plus the interest income from the Fund’s holdings of primarily US Treasury securities and money market income less the Fund’s expenses. It trades WTI crude futures.
iShares Global Energy ETF (IXC)
IXC was at $27. It’s now up to $33.67 and pushing higher.
The iShares Global Energy ETF seeks to track the investment results of an index composed of global equities in the energy sector. Trading at $27, some of its top holdings include Exxon Mobil, Chevron Corporation, BP PLC, Total SA, and EOG Resources.
