2024-04-05 17:00:00 ET
Summary
- Tensions in the Middle East and upcoming elections create opportunities for short-term tactical energy trades.
- Risks of rising oil prices include conflicts in the Middle East and OPEC's influence on oil production.
- Investing in Energy Select Sector SPDR® Fund ETF or selling cash-secured puts on the XLE ETF are potential strategies for profiting from a potential oil price surge.
As tensions in the Middle East flare up yet again and as we enter election season, putting on some shorter-term tactical energy trades on top of existing oil and gas investments makes some sense.
Currently, energy traders are anticipating a squeeze in deliverable supplies of oil and a sharp depletion of inventory over the summer. This is reflected in the spot price and calendar spreads. In short, they are anticipating higher oil prices into summer....
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XLE: 2 Oil Trades To Hedge A Broader Middle East War And Politics