XOP - XOP: Oil Could Get Unpredictable Come Summer
2024-02-23 17:02:00 ET
Summary
- The SPDR® S&P Oil & Gas Exploration & Production ETF is an efficient fund that tracks U.S. E&P players with a focus on oil.
- The XOP ETF has a typical breakdown of holdings for oil ETFs, with 70% in E&P and 20% in refinery stocks.
- There are concerns about the oil market, with potential problems starting in the summer and downward pressure on oil prices related primarily to geopolitical interactions.
- On the other hand, a falling oil price also will likely solve issues of inflation expectations, and allow for demand to resume.
- Finally, industry consolidation is probably quite a good thing for the industry.
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XOP: Oil Could Get Unpredictable Come Summer