Where to Invest with Oil Back Above $100

Oil prices are on the run.

Last checked, crude was above $100 for two key reasons.

One, Shanghai is relaxing some of its restrictions in neighborhoods that have had no COVID cases for two weeks.  That cooled fears over weak energy demand.  Two, OPEC just told the European Union that existing and future sanctions on Russian could create oil supply shocks.

In fact, as noted by Barron’s, “OPEC sees a potential loss of more than 7 million barrels per day, secretary-general Mohammad Barkindo reportedly said, adding ‘it would be nearly impossible to replace a loss in volumes of this magnitude.’”

We must also consider summer driving season is nearing again, which could send prices higher. “Gasoline prices have been fluctuating but are likely to keep moving sporadically higher, and more drivers could pay over $5 and even $6 a gallon for unleaded in the peak summer driving season,” says CNBC.

So, where should we invest?

Immediate-term, we’d look at oil stocks, like Exxon Mobil (XOM) and Chevron (CVX).  With oil prices rocketing again, both stocks could see higher highs, near-term.