12.27 +0.08 (0.66%)
After hours: 7:50PM EDT
|Bid||12.26 x 317700|
|Ask||12.24 x 42300|
|Day's Range||12.11 - 12.28|
|52 Week Range||9.23 - 16.24|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||2.19|
|Expense Ratio (net)||0.73%|
Given the abrupt changes in oil price and an uncertain outlook, investors should place their bet on oil ETFs cautiously or take advantage of the quick turn in sentiment with the help of leveraged or inverse ETFs.
The loss of production capacity following weekend attacks on Saudi Arabian oil production facilities and increasing tensions in the region highlighted the outsized impact the kingdom's oil supply has on China, which is already facing worries of economic sluggishness. China is the world's second-largest importer of oil from Saudi Arabia, having last year bought just under $30 billion worth of crude from the kingdom. The good news for China is that Saudi Arabia is only its second-largest supplier of crude oil.
The price of oil surged the most on record Monday after a drone attack on Saudi Arabia's oil infrastructure crippled its resources. Saudi Arabia said Tuesday it is close to bringing back online 70% of the 5.7 million barrels per day of oil impacted.
Brent crude futures soared close to 20 percent in Monday’s opening market session following drone attacks on oil facilities in Saudi Arabia over the weekend, which sparked fears of supply shortages globally. “While in the short term the direct physical impact on the market might be limited, this should move the market away from its bearish macroeconomic cycle and raise the risk premium in the market as funds reduce their short positions,” said Chris Midgley, global head of analytics, S&P Global Platts. U.S. President Donald Trump was quick to react to the attacks by saying that he would tap into emergency reserves if necessary in order to offset any supply disruptions.
An attack on Saudi Arabian oil fields has removed about 5% of global oil supplies. As a result, oil prices have jumped. It sounds scary for oil and stock investors, but for the time being, the chart tells a different story.
Volatility is striking the oil markets after attacks in Saudi Arabia forced the country to cut its oil output by 50%. Crude oil opened up 10% this morning -- lighting a fire under the energy sector. Today we'll look at three ways to invest in energy stocks. They should all benefit from continued uncertainty in the oil markets."An oil processing facility at Abqaiq and the nearby Khurais oil field was attacked on Saturday, knocking out 5.7 million barrels of daily crude production or 50% of the kingdom's oil output," Yun Li reported for CNBC.On the heels of the news, Brent crude futures saw their largest intra-day rise on record, lifting 19.5%.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe energy sector has been one of the weakest performers this year, so higher oil prices could provide a much-needed boost to what has otherwise been a dismal showing. * 7 Tech Stocks You Should Avoid Now Let's look at three ways to invest in energy that should benefit from heightened anxiety in the Middle East. Energy ETFs to Buy: United States Oil Fund (USO)Source: ThinkorSwimSource: ThinkorSwimThe most direct route available for speculating on crude oil is via the United States Oil Fund (NYSEARCA:USO). Because it owns oil futures, USO does a great job of tracking short-term movements in the energy markets. Up 13.6% since this morning, USO is back to the $13 range for the first time since November 2018.Implied volatility is also spiking at the open to 49%, or the 60th percentile of its one-year range. The juicy premiums and USO's low price tag make naked puts a compelling trade here.If you think the risk remains to the upside for oil, then sell the Oct $12 puts for 40 cents. Consider it a bet that USO stays above $12. If it does, you'll capture the 40 cent premium. SPDR S&P Oil & Gas Exploration & Production ETF (XOP)Source: ThinkorSwimSource: ThinkorSwimIf you're not trading oil directly, then you're looking for derivative plays. And that brings us to energy stocks. Rather than picking individual companies, you could play the entire space via a diversified exchange-traded fund like the SPDR S&P Oil & Gas Exploration & Production ETF (NYSEARCA:XOP). XOP holds a variety of energy companies involved in exploration and production. Like USO, its cheaper price tag makes XOP an excellent target for options selling.This morning, XOP is jumping 11.3% to a two-month high. While much work remains before the longer-term downtrend reverses, I do like how the fund now sits above the 50-day and 20-day moving averages. * 10 Stocks to Sell in Market-Cursed September Implied volatility is booming this morning, reflecting a sharp increase in the premiums available for options sellers. If you're willing to bet oil uncertainty keeps XOP aloft, then sell the Oct $23 puts for 50 cents. Energy Stocks to Buy: Exxon Mobil (XOM)The final route available to profit from the oil spike is to pick an individual energy stock. Exxon Mobil (NYSE:XOM) is the biggest in the space and offers a lower volatility avenue for speculation. Just look at today's movement for proof. While USO is up 13.6% and XOP is up 11.3%, XOM stock is only rising 2.2%.Exxon offers a lower beta path for traders. This morning's jump carried XOM directly into overhead resistance at the 200-day moving average. And thus far, the ceiling is holding firm. The stock is dropping slightly as I type and now below it's day high of $75.18.While some backing and filling may be needed to digest this morning's move, the downside should be limited as long as uncertainty keeps oil prices higher.If you think XOM stock still sits above $72.50 in a month, then sell the Oct $72.50/$67.50 bull put spread for 80 cents.As of this writing, Tyler Craig didn't hold a position in any of the aforementioned securities. Check out his recently released Bear Market Survival Guide to learn how to defend your portfolio against market volatility. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Recession-Resistant Services Stocks to Buy * 7 Hot Penny Stocks to Consider Now * 7 Tech Stocks You Should Avoid Now The post 3 Great Ways to Invest in Energy Today appeared first on InvestorPlace.
Oil ETFs surged upwards of 10 percent Monday after attacks on Saudi oil production facilities Saturday knocked out 5.7 million barrels of daily production.
Rising tensions in the Middle East could spike oil prices further this week as events unfold following an attack on Saudi Arabian oil facilities over the weekend. This could hamper global supply, which ...
Mainstream Media Starts Seeing Stark Central Banking Dilemma The mainstream media is starting to catch on to the fact that central banks might be toast, and not the lightly toasted kind that enhances flavor. More like the Cajun kind that turns everything black. Reuters opens an ominous report on the European Central Bank entitled “Draghi's […]The post Market Morning: Johnson Defies Benn, Saudi Oil Black Swan, Golden Toilet Heist appeared first on Market Exclusive.
Saudi Aramco has had to cut production by as much as 5 million barrels a day after the Houthi rebel group in Yemen led a drone attack on the the biggest crude-processing plant. The shutdown amounts to ...
Saudi brought in a royal family member in the energy sector's top position, probably to boost oil prices and facilitate Aramco's IPO. These ETFs can benefit if things go as planned.
Differences in outlook on how best to deal with adversarial countries led President Donald Trump on Tuesday to dismiss National Security Advisor John Bolton and will force the president to choose a fourth person for the job less than three years into his administration. To many observers the move, while not necessarily expected, wasn't surprising: Trump and Bolton had notably differing approaches to the nation's perceived adversaries, with Bolton a hardliner criticized by some as a war hawk while Trump has vacillated between conciliatory and threatening, but generally has preferred to negotiate over differences more than Bolton.
Mario Draghi Expected to Rage Against the Dying of the Euro This week will be European Central Bank President Mario Draghi’s last opportunity to print the Old World into prosperity. Monetary policy wonks are almost universally expecting him to push overnight lending rates in the Eurozone even further into negative territory, despite the fact that […]The post Market Morning: Draghi's Final Act, Brexit Saga Continues, Saudis Get New Energy Guy, China Buys Gold appeared first on Market Exclusive.
After slipping into bear territory on trade war escalation and recession fears, oil prices received a boost from a slew of positive news including pick up in China's services sector and hopes of trade talks resumption.
The United States Oil Fund (NYSEArca: USO), which tracks West Texas Intermediate crude oil futures, and the United States Brent Oil Fund (NYSEArca: BNO), which tracks Brent crude oil futures, rallied Wednesday ...
Volatile as always, the United States Oil Fund (USO) , which tracks West Texas Intermediate crude oil futures, is lower by 2% this week, but the benchmark oil exchange-traded product is luring some elevated options activity. Oil’s demise has been the result of a number of occurrences. On Tuesday, the API reported a surprise crude oil inventory build of nearly 4 million barrels, jolting markets that had just seen massive increases on earlier news that the United States was pushing back tariffs for some of the items anticipated to go into effect at the beginning of September.
An attack on Saudi Arabian oil production over the weekend shocked markets. Emily Hawthorne, Stratfor Middle East analyst, joins Akiko Fujita on 'The Ticker' to discuss what the potential geopolitical implications of this could be.