February 28, 2008 at 3:00 pm by Tom Lydon
Crude futures are breathing down the neck of an all-time high, giving oil-service stocks and exchange traded funds (ETFs) some upward momentum.
Oil’s surge owes much to the weakness in the U.S. dollar and worries over a new supply outage in Nigeria, which is Africa’s largest producer of crude. As a result, the Oil Services HOLDRs (OIH) is at a six-week high, reports Wanfeng Zhou for Thomson Financial. The Energy Select Sector SPDR (XLE) also hit its highest level since Jan. 4.
Crude for April delivery closed at $102.59 a barrel, and oil reached a record high of $102.97 a barrel today.
Among the other funds reaping the rewards of record-high oil prices are:
- SPDR S&P Oil & Gas Exploration & Production (XOP)
- iShares Dow Jones US Oil & Gas Exploration Index (IEO)
- United States Oil (USO)
For full disclosure, some of Tom Lydon’s clients own shares of IEO.
