As we approach the beginning of the long Memorial Day weekend, many Americans are making plans to hit the road. Not coincidentally, so are higher gas prices. While gas is now around $2.20-2.29 per gallon in the St. Louis area (a 15% or so increase in the last 3 weeks), it is well under the $3.70-3.80 we were paying a year ago. Many people forget that oil and gas are commodities that fluctuate in price in part due to supply and demand pressures. As we head into summer, more people drive more miles and thus, use more gas. So are we heading for $3 or $4 gas? Probably not. Read an article with a take on that here:
One way for traders and investors to take advantage of higher gas prices is to buy exchange traded funds that focus on these sectors. That way, if oil and gas prices go up, you make money to help pay for higher gas prices at the pump. A few big ones to look at are:
United States Oil Fund, LP ("USO")
Powershares DB Oil Fund ("DBO")
United States Gasoline Fund, LP ("UGA")
The first 2 of the above follow price changes in a barrel of oil, the 3rd one focuses on the price changes of gasoline. Check them out and you can profit when oil and gas goes up, not sing the blues! Have a safe holiday weekend!
No comments:
Post a Comment