I am in a business class and i need to invest in a stock that is directly related to gas prices/oil prices. Which stock should i choose?
2006-09-11 11:11:13 · 11 answers · asked by coin_kingdom 1 in Business & Finance ➔ Investing
To answer your question,
You can buy USO which tracks directly (very very close) to the price of crude oil. It trades like a stock, but like GLD (at 1/10 of price) and SLV, it's valued at a ratio to the actual commodity.
Else, if you rather track a sector, you could choose OIS (oil services) or OIH (Oil holders), etc. to be in tune with the prices of oil related firms.
For more info on these you can go to amex.com or holders.com.
As for XOM, that's just one company and although approx 73% of the stock price will move in tune with the market and sector, XOM's stock price can still fluctuate with some volatility related specifically to the company (e.g. can someone say backdating of options) and not related to the the price of oil), so that's why I recommended the other items for what you had asked.
Hope that helps!
2006-09-11 11:48:30 · answer #1 · answered by Yada Yada Yada 7 · 2⤊ 0⤋
XOM is a good oil stock - the oil indexes are XOI & OIX is you want to follow vs XOM
oil stocks have been selling off
2006-09-11 12:17:43 · answer #2 · answered by Vegas 2 · 0⤊ 0⤋
There is not a direct connection. Stock price is based on value of the company who issued the stock. Oil prices are based on assorted market forces. The major oil companies have many types of products and services, besides drilling and refining oil. It is possible for oil prices to go up and stock value of an individual company go down.
2006-09-11 11:16:48 · answer #3 · answered by regerugged 7 · 0⤊ 2⤋
For an oil stock play, try XLE, an oil SPDR. It tracks the big oil and energy SP 500 companies.
2006-09-11 12:07:04 · answer #4 · answered by Yardbird 5 · 0⤊ 0⤋
In international marketplace crude oil fees have long previous down. There are limit on fees at kin point.. fees are desperate with the help of government. there's a value administration. clearly, fees are extra so no longer worthwhile. call for and furnish of shares, profitability of the business enterprise, promotors' integrity, government rules, operators, international traits and so on. are the climate in finding out share fees.
2016-11-07 03:14:13 · answer #5 · answered by ? 4 · 0⤊ 0⤋
The only "stock" that directly tracks (or is supposed to track) is USO - the oil ETF.
2006-09-11 13:17:05 · answer #6 · answered by TJ 6 · 1⤊ 0⤋
I've found that APA tracks it pretty well. But the oil sector index is a good one too.
2006-09-12 05:40:12 · answer #7 · answered by chadspolka.matrix 2 · 0⤊ 0⤋
Better invest on a related index, like SP Energy sector index.
2006-09-11 11:14:24 · answer #8 · answered by hahagoodguy 2 · 1⤊ 1⤋
CRB index or OIL EFT
2006-09-11 16:55:05 · answer #9 · answered by Hoa N 6 · 0⤊ 0⤋
try the drillers and know that they are ahead of the price
2006-09-11 12:27:50 · answer #10 · answered by Byron W 3 · 0⤊ 0⤋