Oil prices are gushing higher.
Last checked, crude oil was up by about $5 to $80.64, and could race even higher. All after OPEC shocked the market with an output cut of 1.6 million barrels per day. As noted by Saudi Arabia, “The Ministry of Energy official emphasized that this is a precautionary measure aimed at supporting the stability of the oil market.”
With that, some analysts warn we could see $100 oil again.
“OPEC+‘s plan for a further production cut may push oil prices toward the $100 mark again, considering China’s reopening and Russia’s output cuts as a retaliation move against western sanctions,” CMC Markets’ analyst Tina Teng told CNBC.
That being said, we’re looking for a big rally in names such as Exxon Mobil (XOM), Chevron (CVX), Occidental Petroleum (XOY), and the following ETFs.
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. We last mentioned this ETF on March 21, as it traded around $80. This morning, the XLE ETF is set to open at $86.55.
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.
We last mentioned this ETF on March 21, as it traded around $122. This morning, it’s set to open at $134.14 a share.
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. On March 21, IXC traded at $36.80. It’s set to open at $38.40.