Comments on: High Oil Prices Help Oil Services and Equipment ETFs http://www.etftrends.com/2007/10/oil-etfs.html Keeping a grip on exchange traded funds (ETFs) Sat, 21 Nov 2009 23:28:06 -0800 http://wordpress.org/?v=2.8.6 hourly 1 By: Tom Lydon http://www.etftrends.com/2007/10/oil-etfs.html/comment-page-1/#comment-576 Tom Lydon Thu, 01 Nov 2007 21:44:39 +0000 http://etftrends.com.s14057.gridserver.com/2007/10/high-oil-prices-help-oil-services-and-equipment-etfs.html#comment-576 NL - The energy companies and service providers in the oil/energy industry have not been shy about passing on the cost to consumers. We have seen that at the gas pump. Thanks, Tom NL – The energy companies and service providers in the oil/energy industry have not been shy about passing on the cost to consumers. We have seen that at the gas pump.
Thanks, Tom

]]> By: NL http://www.etftrends.com/2007/10/oil-etfs.html/comment-page-1/#comment-575 NL Tue, 30 Oct 2007 21:08:08 +0000 http://etftrends.com.s14057.gridserver.com/2007/10/high-oil-prices-help-oil-services-and-equipment-etfs.html#comment-575 How exactly does higher oil prices affect energy ETF XLE with holdings such as Exxon Mobil and Chevron? Initially you would think it would shrink gross margins unless this price increase was passed on to the consumer. But is the majority of this risk mitigated through the purchase of futures etc?? What is the general relationship here...... or is it dependant upon other variables? How exactly does higher oil prices affect energy ETF XLE with holdings such as Exxon Mobil and Chevron?

Initially you would think it would shrink gross margins unless this price increase was passed on to the consumer. But is the majority of this risk mitigated through the purchase of futures etc??

What is the general relationship here…… or is it dependant upon other variables?

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