What traded security is positively correlated with oil price?

Answer 1

To answer your question,

You can buy USO which tracks directly (very close) to the price of crude oil. It trades like a stock, but like GLD (which trades at 1/10th of gold price) and SLV (at 10X silver price/oz), it's valued at a ratio to the actual commodity.

Else, if you rather track a sector, you could choose OIS (oil services), OIH (Oil holders), OIX (Amex oil index), 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.

If you pick specific companies such as 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 above to do what you had asked.

Hope that helps!

Answer 2

Recently the oil prices have been based directly on speculative futures markets. If we know that in a week, a hurricane is going to wipe out a bunch of oil production capital, then the speculative supply will go way down and demand way up. Then the oil companies will start selling their crude based on that new demand influenced price a week before the disaster. Every single traded security is correlated with the price of oil because it takes oil to ship goods. General Electric, Microsoft, General Motors, etc. all go down when oil price goes up. One market sector that is especially linked to oil is the precious metal market. Try BHP or GLD.

Answer 3

The stocks of almost all energy companies are positively correlated with the price of crude oil, but not necessarily directly or with a correlation of 1.00.

First, here's a six month chart of crude oil:

http://www.freecharts.com/Commodities.aspx?page=chart&sym=CLV6

Now take a look at the charts of these three energy companies:

XOM -- Exxon Mobil -- A large multinational integrated oil producer and retailer

SLB -- Schlumberger -- a supplier of oil field drilling services and equipment

APA -- Apache Corp -- A US exploration and production company that drills primarily in the Gulf of Mexico area and Texas.

Answer 4

If you want to invest in a security that moves with the price of oil, use the ETF USO.
http://www.marketwatch.com/tools/etfs/html-profile.asp?symb=uso&siteid=mktw

The shares of oil companies, drillers, etc. are all derivative, at best, and will exhibit some correlation.

Answer 5

Actually, there are two ETF's that directly represent oil:
USO Oil Fund:
http://finance.yahoo.com/q?s=uso
-and-
iPath Goldman Sachs Crude Oil TR Idx ETN (OIL)
http://finance.yahoo.com/q?s=oil

Answer 6

Try the Amex Oil Index, symbol ^XOI.

Answer 7

None, the securities price is determined by how profitable the company is, not the price of oil.

but try UMESX...