Which of the following USO, OIH and XOI most closely follow the price of oil (light crude)?

Question

are there other symbols that I am missing? Please feel free to comment on the different ticker symbols. Thank you.

1) the symbols above are not any oil companies' symbols
2) plot a 10day price chart of any major oil company and you will see how much it looks like that of the oil for the same period

Answer 1

USO.

United State Oil Trust (AMEX: USO) is an ETF, which has the unusual properties of having physical oil as its underlying asset instead of a company. OIH and XOI are ETFs also, but their underlying assets are oil companies. OIH is oil service (E&P), while XOI's basket also includes lots of upstream service stocks, is has a bit more weight toward oil producers. While all three are correlated with "oil" prices, USO's correlation is closest to 1.0.

If you like oil, there's also DBO. I like USO because it is more liquid.

If you want more gas exposure, there's XES, EIO and XOP.

Answer 2

There are not any crude oil stocks, era. you do not look to comprehend what the observe "inventory" skill. A inventory is one of those safe practices that shows possession in a corporation and represents a declare on portion of the corporation's resources and income. when you consider that "crude oil" isn't a corporation, and can't be, there are not any crude oil stocks. that's thoroughly ineffective for a secure practices to stay with the cost after that's suggested. Any safe practices can do this, in theory, and there are likely a minimum of a few dozen that truly do. What you truly favor are securities that assume destiny crude oil prices. this isn't achieveable with out insider understanding, so per chance you need to be paying a visit to Saudi Arabia.

Answer 3

Your question is presuming a direct relationship between the price of light crude and the strength of an energy company. This is simply not a verifiable relationship, since the price of crude is dependent on the buyers and sellers in the cash market actually making those transactions, regardless of the strength of the companies or their stock.

With regards to stocks, the underlying commodity with which a company operates is only one factor amongst many that determines a company's stock price. I don't recommend picking any stock based solely on the direction in which a commodity trades.