XLE: Sell Oil And Buy Oil Company Shares

Multiplo Invest2.98K FollowersFollow5ShareSavePlay(7min)CommentsSummaryThe Iran conflict triggered what may be the largest oil supply shock in history, with oil prices surging 39%. Now, the big moment may belong to the oil companies.Historical patterns suggest oil prices will likely retract in April, potentially falling to $80, though prices should remain elevated versus pre-war levels. This scenario benefits the shares of oil companies.Risks include a smaller safety margin and concentration of XLE. peshkov/iStock via Getty Images Investment Thesis I am changing my recommendation from sell to buy for the State Street Energy Select Sector SPDR ETF (NYSEARCA:XLE). My first article about the asset was published on October 21, 2024, and afterThis article was written byMultiplo Invest2.98K FollowersFollowMore than 7 years of experience in equity analysis in LatAm. We provide our clients with in-depth research and insights to help them make informed investment decisions.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.