Oil prices are gushing even higher, as expected.
This time, it’s running on news the Saudis will extend its million-barrel per day crude production cut into September. “In effect, the Kingdom’s production for the month of September 2023 will be approximately 9 million barrels per day,” they said, as quoted by CNBC.
In addition, according to CNN, “The prolonged supply restraint from Saudi Arabia and Russia comes even as oil prices have rebounded in recent weeks, helping to lift pump prices for US consumers to nine-month highs.”
It’s also forcing ETFs higher, including the ones we mentioned on June 5.
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. Since June 5, the XLE ran from about $80 to $87.23 so far.
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.
Since June 5, the XOP ran from about $123 to $143.72.
iShares Global Energy ETF (IXC)
The iShares Global Energy ETF tracks stocks, such as Exxon Mobil, Chevron Corporation, BP PLC, Total SA, and EOG Resources. Since June 5, the IXC ran from about $36 to $39.15.