Oil prices could gush even higher.
That’s according to Doug Lawler, CEO of Continental Resources. In fact, he believes crude could push as high as $150 without new production. “More price pressure is coming, he said, unless policies are put in place to encourage more output,” he added as quoted by MarketWatch.
Worse, Lawler said he thought oil “absolutely” would hit the $100-a-barrel threshold and that he expects to see continued volatility in the $80- to $100-a-barrel price environment.
In short, if you thought current pump prices were bad, just wait. With $150 oil, you may want to be well invested in oil stocks, like Exxon Mobil, Chevron, Continental, and Occidental to name a few. Or, you can always invest in oil-related ETFs, such as:
SPDR Energy Select Sector ETF (XLE)
With an expense ratio of 0.12%, the XLE ETF provides exposure to companies in the oil, gas, and consumable fuel, energy equipment, and services industries, as noted by State Street SPDR. Not only does an ETF allow for diversification, you can buy it for less than a single one of its holdings.
SPDR S&P Oil & Gas Exploration & Production ETF (XOP)
With an expense ratio of 0.35%, the ETF provides exposure to the oil and gas exploration and production segment of the S&P TMI, which comprises the following sub-industries: Integrated Oil & Gas, Oil & Gas Exploration & Production, and Oil & Gas Refining & Marketing, as noted by State Street SPDR. Some of its top holdings include Callon Petroleum, SM Energy Company, Devon Energy Corporation, EOG Resources, and ConocoPhillips, for example.