Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

How to Play $100-Per-Barrel Oil

By

Before oil hits triple digits, investors should consider Exxon Mobil, Chevron, and ConocoPhillips as these companies will print money at this price.

PrintPRINT
Editor's Note: This content was originally published on Benzinga.com by Roger Nachman.

Oil looks like it's going to $100 per barrel. It's all but inevitable at this point, and it may happen sooner than any of us think -- especially now that China has decided to hold off on raising interest rates for now.

If that's the case, it may very well slow down the economy in the longer term, but for now, analysts see it as a sign of demand and that the global economy continues to strengthen.

Personally I'm a believer in commodities as opposed to fiat currencies as commodities actually have a value in society. Oil is used to heat homes, run cars, make plastics, etc. Copper is used for plumbing and in construction. You get the idea.

That's the point. Everyone else around the world does as well. So before oil hits triple digits, consider looking at the majors like Exxon Mobil (XOM), Chevron (CVX), and ConocoPhillips (COP) as these companies will print money at this price.

There are certain ETFs that will benefit from higher oil prices, like United States 12 Month Oil Fund, LP (USL), Oil Service HOLDRs ETF (OIH), and to a lesser extent United States Oil Fund LP ETF (USO).

With oil at $100 per barrel, the entire sector from the majors on down to the nuts-and-bolts guys (Schlumberger (SLB) and Halliburton (HAL)) will be flush with cash.

Black gold at $100 may very well lead the market to new highs in 2011, but where it takes us after that is anybody's guess.


Below, find some more great ETF and market content from Benzinga:

Celtic Creditors and the Future of the EU and Euro
By William K. Black

Time for Japan? Options Market Says Yes
By The ETF Professor

VeriFone Key Player in Mobile Payment Revolution

By Barry Bazzell
< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE