Investing in Crisis: Opportunities from Rising Oil Prices
In times of crisis, when oil prices rise, there are various ETFs (Exchange Traded Funds) that investors can use to position their portfolios well to benefit from this development. Crude oil remains the most important fuel for the global economy, and geopolitical tensions such as the Middle East conflict often drive oil prices higher. While a rise in oil prices can lead to higher costs and inflation, it also offers opportunities for investors.
Why is Crude Oil So Important?
Crude oil continues to be the central energy carrier worldwide. Rising prices affect fuel and heating costs, which in turn influences inflation as well as monetary policy decisions.
ETF Strategies for Rising Oil Prices
1. Direct Access through Commodity ETPs
The most direct way to participate in rising oil prices is through commodity ETPs (Exchange Traded Products) that track futures for Brent or WTI. An example is the Leonteq Brent Crude Oil Futures ETP, which synthetically replicates the European Brent Crude Oil Futures Total Return Index and offers relatively inexpensive direct access to the oil market with a total expense ratio of about 0.45%.
2. Stock-based Energy ETFs
In addition to pure commodity products, ETFs that invest in companies in the energy sector are attractive—especially large oil producers or infrastructure companies like ExxonMobil or Enbridge. These benefit from rising prices through higher margins and dividend payments.
3. Thematic ETFs in Renewable Energy & E-Mobility
As a counter-strategy to dependence on fossil oil, green ETFs are becoming increasingly important—such as those focusing on renewable energy or electric mobility. These could profit in the long term if high energy prices accelerate the transition to alternative technologies.
Opportunities and Risks
A rise in oil prices can offer strong return opportunities in the short term, especially during geopolitical crises such as the conflict in the Middle East or blockades of important transport routes (e.g., the Strait of Hormuz). However, analysts warn of significant price volatility: in the worst-case scenario, Brent could reach up to $120 per barrel. This also means increased volatility for investors.
Conclusion
By combining direct commodity ETPs to track the oil price with stock ETFs from the energy sector, investors can effectively hedge or benefit from rising oil prices. Additionally, thematic green ETFs can serve as a hedge against long-term structural changes. Thus, a potential “oil price shock” can be weathered relatively well.
These strategies help investors make their portfolios crisis-proof in light of an important global economic factor: the price of crude oil.