Tag: Crude Oil ETFs

EU Cuts Off Russian Oil Making These ETFs Top Buys

Posted on by Matt Thalman

When the European Union voted to cut off Russian crude on May 31st, it was essentially a green light to buy oil stocks and, thus, a number of oil-focused ETFs. But before we dig into a few options that you should look at, let's talk about why this move is good for the oil industry and not necessarily your wallet.

The European Union voted to ban nearly all Russian oil from entering Europe. The details of the agreement essentially cut Russian oil imports into Europe by 90% over the next six months. The 27-country bloc relies on Russian oil for roughly 25% of what they consume. The ban directly applies to Russian oil that is delivered by sea, which means landlocked countries and Hungary, which receive the oil via pipelines, will still be permitted to access the commodity.

The goal of these sanctions is to cripple the Russian economy and force them to stop the war in Ukraine; however, Russia has already stated that they have other buyers of their oil in Asia, particularly China and India. Many believe Russia will be able to sell its oil to other countries but at a discount. Which will hurt Russia but may not have as much of an effect as the EU and other allied countries would like to see. Continue reading "EU Cuts Off Russian Oil Making These ETFs Top Buys" →

3 ETFs To Buy If You Think Oil Will Continue To Rise Following OPEC's Decision

Posted on by Matt Thalman

Matt Thalman - INO.com Contributor - ETFs


Last week the Organization of the Petroleum Exporting Countries or OPEC announced that the group had to come an "agreement" to reduce oil production. The new deal slated to cut production from an estimated 33.2 million barrels per day down to 32.5 million barrels per day.

While some Wall Street analysts don't believe the production reduction will actually happen, the fact remains that since OPEC made the announcement, the price of oil is up rather dramatically. Prior to the announcement oil was trading around the $44.50 range and has since jumped to the $50 range.

Many investors are looking at the price of oil and wondering how they can get a piece of this action. Let's take a look at three Exchange Traded Funds you can buy if you believe oil prices will continue to increase. Continue reading "3 ETFs To Buy If You Think Oil Will Continue To Rise Following OPEC's Decision" →

3 ETF's To Buy If You Believe Oil Is Heading Higher

Posted on by Matt Thalman

Matt Thalman - INO.com Contributor - ETFs


In August of 2014 West Texas Intermediate Crude was trading around the $98 range. That was lower than the $105 range it traded in during June of 2014. Today it is trading below $40 a barrel and as oil continues to fall to new multi-year lows, some investors are wondering when the commodity will stop declining and begin once again moving higher. I recently published a piece pointing out a few ways investors can profit from oil continuing to decline. But, if you are like me, believing that the price of oil will eventually move higher from today's levels there are a few different ETF's you can buy to play a move higher in oil.

But first, let's discuss why I believe oil will move higher, sooner rather than later. Currently, West Texas Intermediate crude is trading below $40 a barrel and at that price most, of the oil producers are losing money. The average cost per barrel in the Canadian Oil Sands is somewhere in-between $50-$100 a barrel. In the North Dakota Bakken Shale, the average is around $40-$70 while in Texas it is somewhere around $40-$80 a barrel. In all of North America, only Alaska has a cost per barrel below $40. Continue reading "3 ETF's To Buy If You Believe Oil Is Heading Higher" →

3 ETF's To Buy If You Think Oil Will Continue To Decline

Posted on by Matt Thalman

Matt Thalman - INO.com Contributor - ETFs


Oil hit a six-and-half-year low on Wednesday after inventories numbers came in much higher than Wall Street analysts and investors were expecting. While many arguments can be made for why oil will continue to decline or rise in the coming months, the reality is, we just don’t know what is going to happen.

But regardless of how you fell the commodity will perform in the coming months; there is no shortage of ways to make money in the oil market. You could go long or short the commodity itself, go long or short exploration and production giants like Exxon Mobile (XOM) or Chevron (CVX), make a play with smaller oil and gas producers, invest in oil and gas MLP's, the pipelines company's, or even just the equipment suppliers.

In most of these instances though, you will be stuck cherry picking individual company's and trying to figure out which ones are best positioned to benefit from higher oil prices or attempting to determine which ones will be hurt the greatest if oil prices continue to decline. But one way to make this process easier, is to simply buy an ETF that bundles a number of those companies together and either takes a bullish or bearish position on them.

And since oil has recently been falling, let's take a look at a few ETF's that are built to help make you money from declining oil prices. Continue reading "3 ETF's To Buy If You Think Oil Will Continue To Decline" →

How To Invest In Oil Like A Pro

Posted on by Adam Feik

Adam Feik - INO.com Contributor - Energies


In the last 2 weeks, I've written about oil ETFs and broader energy and commodity ETFs. Interestingly enough, some of those ETFs have switched over to "green triangles" on their MarketClub charts, just within the past few days. Check out USO and DBE for example. DBO (the oil ETF I prefer over USO) has not yet flipped over to a long-term ("monthly") green triangle.

Another way to play oil prices

Today, I'm going to describe a slightly more sophisticated way to bet on rising oil prices. The advantages of this approach, compared to buying ETFs, are these:

• You can place fewer dollars at risk. Yet at the same time…
• You can retain reasonable upside potential, and…
• In combination, you can almost entirely protect your principal, in order to make sure you'll live to invest another day (even if you're wrong about this particular oil bet).

Here's how it works: Continue reading "How To Invest In Oil Like A Pro" →