Leveraged Oil & Energy ETFs To Play On Saudi Attack
Zacks Investment Research | Sep 16, 2019 01:00AM ET
Oil prices jumped the maximum on record after an attack on Saudi’s oilfields eliminated about per Bloomberg .
Though the Saudi Arabia’s global daily exports and more than 5% of the world’s daily crude oil production.”
Roberto Friedlander, Seaport Global’s head of energy trading, expects oil to gain $10 per barrel , depending on the timing of a turnaround, as quoted on CNBC. And if Saudi resumes production sooner than expected, “the impact is more likely to be $3-5 to Crude,” Friedlander added.
How to Profit?
If you are a believer of a prolonged extension of supply disruption, you can definitely invest in regular and leveraged oil or energy exchange-traded products for gains, at least for the short term.
Leveraged ETFs in Focus
ProShares Ultra Bloomberg Crude Oil ETF (How to Trade Oil Rush With These ETFs ).
Direxion Daily S&P Oil&Gas Exploration & Production Bull 3X ETF GUSH gives three times exposure to the S&P Oil & Gas Exploration & Production Select Industry Index.
Direxion Daily Energy Bull 3X ETF ( (ASX:ERX) ) offers three times exposure to the Energy Select Sector Index.
ProShares UltraPro 3x Crude Oil ETF OILU seeks daily investment results, before fees and expenses that correspond to three times the daily performance of the Bloomberg WTI Crude Oil Subindex.
ProShares Ultra Oil & Gas ( (LON:DIG) ) offers two times the daily performance of the Dow Jones U.S. Oil & Gas Index.
ProShares UltraPro 3x Short Crude Oil ETF OILD seeks daily investment results, before fees and expenses that correspond to three times the inverse of the daily performance of the Bloomberg WTI Crude Oil Subindex.
Any Caution?
As a caveat, investors should note that such products are suitable only for short-term traders as these are rebalanced on a daily basis (see: all Leveraged Equity ETFs here ).
Clearly, a near-term long could be intriguing for those with high-risk tolerance, and a belief that the “trend is the friend” in this corner of the investing world. This is especially true given the news that Saudi Arabia intends to bring back a third of the lost output on Sep 16, per Wall Street Journal . So, a prolonged long-term surge from this attack is less likely.
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