Oil prices have spiked in 2022 because of intense demand, supply shortages, and most recently because of the uncertainty in Ukraine. The S&P 500 energy sector is the only positive group for 2022, up nearly 28%, massively outperforming the equity benchmark.
On Wednesday, U.S. oil climbed to the highest level in more than a decade, with global benchmark Brent nearing $115 per barrel. Amid sky-high prices and geopolitical tensions in Eastern Europe, despite pressure from top consumers to raise production, OPEC+ is sticking to its conservative output plan, which has energy analysts believing that oil will remain profitable for some time.
Whether you’re of the camp that sees oil prices going higher, or you just want to take advantage of oil’s wild volatility, there are several options when it comes to reaping energy rewards. In this article, our team explains a few of the tactics the pros use, along with some recommendations on tickers to consider.
Banyan Hill Publishing:
Just $2 a Share Today — The No. 1 Investment of the 2020s
New technology’s user base growing at 5X the speed of the internet in the 1990s. Could dwarf dot-com boom. [Click here to get details on $2 stock now.]
Buyers and sellers of oil futures establish a price that oil will trade at not today but someday in the future. Because no one can predict what price oil will be trading at next month or next year, participants in the futures market are essentially buying and selling risk in the hopes of making money. Wild swings in oil prices can produce substantial rewards for futures traders, but the level of risk involved is high in relation to other oil techniques.
Futures for oil settle monthly, while most other commodities settle only four times a year. Beyond the two-year mark, oil futures settle semiannually with the latest available contract ten years out. Though the oil futures market for 2032 exists, history shows that predicting prices that far out is a dangerous game. Oil futures are volatile and often require a substantial initial investment.
Jeff Bezos Just Poured $10 Billion Into This…
Not many people know this story… But in 1998, Bezos invested $250,000 of his own money in Google, when the company was just getting started out of a garage in California. When Google went public in 2004, that $250,000 investment translated into 3.3 million shares of Google stock. Nobody knows if Bezos has sold any shares. If he hasn’t, today they’re worth more than $5.6 billion.Jeff Bezos is betting big on a new trend. This time he’s planning to invest $10 billion of his own money in this exciting new trend. That’s 40,000 times more money than what he invested in Google. That’s how big he thinks this could be. [Full Story…]
Another avenue for direct access to the oil market is through an Oil ETF. Oil ETFs differ from funds that offer exposure to a selection of oil stocks in that oil ETFs track the price of oil as a commodity. Oil ETFs offer exposure to the quick, dramatic swings of oil prices without having to navigate the complexities of investing in oil futures contracts. Oil ETFs are a suitable choice for investors with a high tolerance for risk looking for a speculative play on oil prices.
The top-performing oil ETF over the past year and our team’s pick for 2022 is the Invesco DB Oil Fund (DBO). DBO offers exposure to changes in the price of crude oil by investing in futures contracts for West Texas Intermediate (WTI) light sweet crude.
Invesco DB Oil Fund (DBO)
- Net Assets $434.59M
- YTD Daily Total Return 3.96%
- Yield N/A
- Expense Ratio 0.75%
Palm Beach Group:
Teeka: “Buy this Ticker ASAP” – DONT USE.
With experts projecting gains as high as 1,530% by the end of this year… Anyone who doesn’t buy this ticker will most likely regret it later. Even Forbes has confirmed that when all is said and done, “a new class of millionaires may emerge.” Unfortunately, a recent study shows that only 3% of retirees have invested in this opportunity. That means most people will miss out. Don’t be one of them. Click here and get the ticker now… no strings attached. [REVEAL TICKER]
Oil and Gas Equities ETFs
Oil and gas ETFs offer diverse industry exposure through a basket of energy equities, diversifying risk. Production, exploration, and operations present different opportunities and trends, so oil and gas ETFs can diverge from oil markets, often when equity markets are trending sharply.
The Invesco Dynamic Energy Exploration & Production ETF (PXE) is a multi-cap blended fund that tracks the Dynamic Energy Exploration & Production Intellidex Index. The index is composed of 30 U.S. companies involved in the exploration and production of natural resources used to produce energy, selected based on factors including price momentum, earnings momentum, quality, management action, and value.
The top holdings include Continental Resources Inc. (CLR), ConocoPhillips (COP), and Pioneer Natural Resources Co. (PDX) are energy companies engaged in the exploration and production of natural gas and related products.
The Invesco Dynamic Energy Exploration & Production ETF (PXE)
- Net Assets $132.34M
- YTD Daily Total Return 11.21%
- Yield 2.16%
- Expense Ratio 0.63%
Where to invest $1,000 right now...
Before you consider buying PXE, you'll want to see this.
Investing legend, Keith Kohl just revealed his #1 stock for 2022...
And it's not PXE.
Jeff Bezos, Peter Thiel, and the Rockefellers are betting a colossal nine figures on this tiny company that trades publicly for $5.
Keith say’s he thinks investors will be able to turn a small $50 stake into $150,000.
Find that to be extraordinary?
But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream... And by then, it could be too late.
Legend Who Bought Apple at $1.42 Says Buy TaaS Now
It’s called TaaS – and if you haven’t yet heard of this technological breakthrough, you soon will. [Full Story…]