Oil prices are spiking – again.
All after OPEC+ “reconfirmed the production adjustment plan” that it previously agreed that would see 400,000 barrels per day (bpd) added in November, as noted by Reuters.
Not helping, Bank of America analysts say oil could be headed back to $100.
“[O]il prices could spike and lead to a second round of inflationary pressures around the world,” analysts including Francisco Blanch wrote in a note. “Put differently, we may just be one storm away from the next macro hurricane.”
In short, we could be looking at a real mess with oil prices.
Fortunately, we were well prepared for the chaos. On September 27, we highlighted opportunity in some of the top oil ETFs, including:
SPDR Energy Select Sector ETF (XLE)
When we highlighted the XLE, it traded at $52.70. It’s now up to $55.26, and could be headed to $60, near-term unless oil prices back off from highs.
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 $14.29, 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 $28.07 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.
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