Oil and Ike

Today (even the past few days) has been interesting to watch how oil reacts to Ike, the hurricane, not Turner.

The AMEX Oil Index (XOI) is up almost 2%, but oil ETF USO is down a half percent. I recognize they aren’t tracking the exact same underlying issues, but that’s a big difference when both are tracking oil. INO has an interesting take on it. Check out the video they posted yesterday:

Crude, wasn’t it supposed to hit 200 dollars a barrell?

I’m sitting tight on my USO position for now. I want to see how next week rolls out and then I’ll sell covered calls on it. Based on their commentary, I should probably sell in the money calls on it now. It’ll be interesting to watch. At the least, expect gas prices to go up on local shortages from refineries being down and pipelines shut down too.

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1 Comment »

Comment by bikini buying

I think crude will hit 200 dollars a barrel sooner than we think and nothing we can do to stop it unless we get those electric vehicles.

Amber

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