Crude oil is back above $75, and could see $87, says Goldman Sachs.
All thanks to disruption in the Gulf of Mexico, and signs of unexpectedly strong demand.
“While we have long held a bullish oil view, the current global oil supply-demand deficit is larger than we expected, with the recovery in global demand from the Delta impact even faster than our above consensus forecast and with global supply remaining short of our below consensus forecast,” wrote Goldman Sachs’ Damien Courvalin, as quoted by Fox Business.
Should oil prices continue to push higher, here are some of the top ETFs to consider.
SPDR Energy Select Sector ETF (XLE)
At $52.70 with an expense ratio of 0.12%, 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. For example, we can buy the SPDR Energy Select Sector ETF (XLE) for $52.70 a share.
If we were to buy 100 shares, it would cost us $5,270.
If we were to buy some of the fund’s top holdings individually, it would cost far more than that with Exxon Mobil, Chevron Corporation, ConocoPhillips, and Occidental Petroleum.
Invesco DB Oil Fund (DBO)
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, and traded at $13.85.
iShares Global Energy ETF (IXC)
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.
The post Goldman Sachs: Oil Will Climb Back to $87 a Barrel This Year appeared first on Morningology.
