Skimming the Upside in Crude

To take advantage of our forecast upward path for crude in the wake of Donald Trump’s election, we are adding the United States Oil Fund ETF (NYSE: USO) to the Aggressive Portfolio. It provides straightforward exposure to near-term crude oil futures, but remains vulnerable to excessive roll costs and will generate a K-1 tax form. USO is the largest and most liquid play in near-term increases in oil prices. Buy below $11.

We’re also adding former recommendation WPX Energy (NYSE: WPX) to the Aggressive basket. Once primarily a natural gas producer, WPX has transformed itself into one of the purest crude oil plays, with an aggressive development plan focused largely on its extensive Permian Basin leasehold. WPX plans to double its oil output by the end of 2018 while reducing leverage. We’re adding WPX to the Aggressive Portfolio; Buy below $15.

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