Oil Stocks to Buy if Oil Goes Higher

By ETFStocks.com

In response to Iran launching missiles at the USS New Orleans, the US Navy responded by destroying two Iranian oil platforms in the Rostam oil field. The destroyed platforms were being used as tactical communication relay points, radar tracking stations and as bases of operations for Iranian helicopter and speed boat attacks on maritime shipping in international waters.

Imagine what would happen to oil prices if that were an actual story at the top of all internet news sites?

The truth is that ETF Stocks only changed the name of the US ship. It did happen on Black Monday, October 19, 1987 - a day better known for a notorious stock market crash.

With both sides flicking lit matches at one another, you don’t have to be a fortune-teller to see a similar fire erupting. Although stocks got crushed on that bloody October day, oil barely budged.

While ETF cringe as we type “things are different today”, they truly are. Iran has made it crystal clear that they intend on making oil’s price a weapon if they so much as feel “provoked”. Making good on their threat of closing the Straits of Hormuz could be the FireSteel that sparks oil to record highs. (Oil is already trading at all-time Euro dollar highs.)

Let’s get one thing clear before moving forward, ETF Stocks is not predicting or hoping for any such scenario. Four dollar gas is already too much for us! However, even the vertically challenged can’t overlook the political parallels to 1987. (There are a few other strange coincidences worth noting: the NY Giants won the Super Bowl and the stock market got off to a smoking hot start in ‘87.)

Louis Pasteur said, “Fortune favors the prepared mind.” In this case, prepping for a potential oil price spike could help protect your fortune.

ETF Stocks painstakingly reviewed 100s of oil related stocks and their correlation to oil’s price swings. We wanted to determine which equities are most likely to follow oil’s price movements. Obviously, shares could always decouple from oil, but “what's past is prologue.”

Of course, there is always iPath® S&P GSCI® Crude Oil Total Return Index ETN (OIL). It has stuck to oil’s price like Velcro in the past year; although, it has slightly underperformed oil.

ETF Stocks isn’t into underperformance; that is a commodity that you can overpay for anywhere. Instead, we want companies that run hotter when oil rises, and yet they cool less quickly when crude falls.

The following oil related stocks all trade for more than $10, do more than $500,000 a day in volume, and Wall Street’s consensus recommendation is buy. If history does repeat, most should do well if oil gushes higher.

Company Ticker OIL MACHINERY-SERVICES-DRILLING      Cameron Intl CAM    Core Labs Nv CLB    Dresser-Rand Gp DRC    Dril-Quip Inc DRQ    Gulf Island Fab GIFI    Gulfmark Offshr GLF    Helix Egy Solut HLX    Hornbeck Offshr HOS    Natl Oilwell Vr NOV    Oceaneering Int OII    Seadrill Ltd SDRL OIL-EXPLORATION&PRODUCTION      Anadarko Petrol APC    Concho Resourcs CXO    Contl Resources CLR    Georesources GEOI    Gulfport Engy GPOR    Legacy Reserves LGCY    Lin Energy Llc LINE    Mv Oil Trust MVO    Noble Energy NBL    Oasis Petroleum OAS    Pioneer Nat Res PXD    Plains Expl&Prd PXP    Provident Enrgy PVX    Qr Energy Lp QRE    Rosetta Resrcs ROSE    Sm Energy Co SM    Voc Energy Trst VOC    Wpx Energy Inc WPX OIL-MISC      Calumet Speclty CLMT    Eagle Rock Egy EROC    Energy Xxi Ltd EXXI    Genesis Energy GEL    Targa Resources TRGP OIL-INTEGRATED      Bp Plc BP    Cenovus Energy CVE    Chevron Corp CVX    Conocophillips COP    Exxon Mobil Crp XOM    Statoil Asa-Adr STO OIL&GAS PRODUCTION-PIPELINE      Copano Egy Llc CPNO    Dcp Midstream DPM    Enbridge Egy Pt EEP    Holly Egy Ptnrs HEP    Targa Resources NGLS    Williams Cos WMB

 

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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Oil Stocks to Buy if Oil Goes Higher

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