Rising tensions in the Middle East could spike oil prices further this week as events unfold following an attack on Saudi Arabian oil facilities over the weekend. This could hamper global supply, which for oil bulls is news they would like to hear.

As far as the attack is concerned, per a CNN Business report, “Yemen’s Houthi rebels on Saturday took responsibility for the attacks on the Saudi Aramco oil facilities in Khurais and Abqaiq — the world’s largest oil processing facility and crude oil stabilization plant. Saudi Energy Minister Prince Abdulaziz bin Salman said that 5.7 million barrels a day of crude oil and gas production have been affected. The latest OPEC figures put total Saudi production at 9.8 million barrels per day.”

Analysts are already predicting oil prices to spike in this week’s trading session. Thu far in 2019, oil prices have hit lows amid fears of weakening global demand.

“The events in Saudi Arabia have ratcheted up tensions in the Middle East to a new level raising concerns about supply security,” Chris Midgley, global head of analytics at S&P Global Platts said in a statement. “The sudden change in geopolitical risk” could cause crude prices to jump between $5 and $10 a barrel.”

Levering Up the Oil Trade

Volatility could ensue following the attacks in Saudi Arabia, which will no doubt put exchange-traded funds (ETFs) on watch. Whether they’re bullish or bearish on the commodity or the energy sector, traders have a plethora of options, and bulls and bears can play both sides of the trade as oil ETFs rise and fall.

Oil bears can look to the Direxion Daily S&P Oil & Gas Exploration & Production Bear 3X ETF (DRIP) for inverse opportunities. For bulls looking to buy on the weakness can look to the United States 3x Oil (NYSEArca: USOU), ProShares UltraPro 3x Crude Oil ETF (NYSEArca: OILU) and the Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 3X Shares (NYSEArca: GUSH).

Two additional funds for traders to consider are the Direxion Daily Energy Bull 3X Shares (NYSEArca: ERX) for bullish plays and the Direxion Daily Energy Bear 3X Shares (ERY) for bearish opportunities to take advantage of.

For investors who can’t stomach the large movements of leveraged ETFs, there are the United States Oil Fund (NYSEArca: USO) and the United States Brent Oil Fund (NYSEArca: BNO) funds to consider if they want to get in on the oil action this week.

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