Oil prices are gushing higher again.
Last checked, crude was up another $1.13 to $84.30. From here, we could see $90 near term.
“Production cuts implemented by OPEC+ and the ongoing consolidation in the Permian Basin are anticipated to create a bullish tone for oil price trajectories for the remainder of the year,” reported Yahoo Finance.
We also have to consider that warmer weather traveler demand is boosting prices, too. “Alongside that uptick in demand, refineries have begun shifting to a more expensive, less-polluting blend of summer fuel. The summer blend accounts for changing weather conditions in an effort to mitigate environmental impacts,” added ABC News.
With that, Exxon Mobil (XOM), Chevron (CVX), and Occidental Petroleum (OXY) are all pushing higher. So are the energy ETFs we’ve mentioned in prior articles including:
SPDR Energy Select Sector ETF (XLE)
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 than a single one of its holdings. When we first mentioned the XLE ETF, it traded at around $75. It’s now up to $94.89 and could test $100 at this point.
SPDR S&P Oil & Gas Exploration & Production ETF (XOP)
With an expense ratio of 0.35%, the ETF provides exposure to the oil and gas exploration and production segment of the S&P TMI, which comprises the following sub-industries: Integrated Oil & Gas, Oil & Gas Exploration & Production, and Oil & Gas Refining & Marketing, as noted by State Street SPDR. Some of its top holdings include Callon Petroleum, SM Energy Company, Devon Energy Corporation, EOG Resources, and ConocoPhillips, for example.
When we first mentioned the XOP ETF, it traded at around $115. It’s now up to $155.52 and could see $170 near term.
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. Some of its top holdings include Exxon Mobil, Chevron Corporation, BP PLC, Total SA, and EOG Resources.
When we first mentioned the IXC ETF, it traded at around $34. It’s now up to $44.13 and could test $50 near term.
