Interested in OIL?

With the oil demand slowly rising it is possible that by the second half of this year we might se oil rising above 80$. OPEC targeting range is 70-80$ but as seen previously OPEC isn’t almighty. Here are some investment opportunities:

· The US Oil Fund (USO), which holds futures contracts and rolls them forward on a monthly basis. One thing to keep in mind when investing in USO is that contango and backwardation can have significant impacts on its performance.

· The iPath S&P GSCI Crude Oil Ttl Ret Idx ETN (OIL), which is an unsecured, unsubordinated debt security interest linked to the performance of the Goldman Sachs Crude Oil Return Index. OIL seeks to track futures contracts in west Texas intermediate (WTI) crude oil.

· The United States Gasoline Fund (UGA), which seeks to replicate changes—in percentage terms—of the price of gasoline. UGA invests in the futures contract of unleaded gasoline and is subject to the influences of contango and backwardation, similar to that of USO.

· The Energy Select Sector SPDR (XLE), which gives exposure to major integrated oil and gas companies like Exxon Mobil (XOM) and Chevron (CVX).

· The iShares Dow Jones US Oil & Gas Exploration Index (IEO), which primarily holds companies that are focused in the exploration, production, and development of oil and natural gas. Some of its top holdings include Occidental Petroleum (OXY), Apache Corporation (APA), and Devon Energy (DVN).

·  The iShares S&P Global Energy (IXC), which gives global exposure to the energy sector and includes such companies as Royal Dutch Shell (RDS.A), BP Plc (BP), and Petroleo Brasileiro (PBR).

source: http://www.moneyshow.com