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Stocks to Watch if Crude Oil Heats Up

 May 07, 2009 10:23 AM UTC
Return Risk
-13.40% HIGH
Tracked Blogger
Symbol Sentiment Start Return Closed
XOM n/a
SUN n/a
TRA n/a
BP n/a
AGU n/a
SQM n/a
COP n/a
CVX n/a
USO n/a
POT n/a

Graphic_arrow1 Via Long Investment Ideas from Seeking Alpha:  

Historically, when we begin to enter the spring/summer months, the price of crude oil heats up. As crude starts to heat up, some chemical stocks immediately come to mind. Yes, chemical stocks, not your average oil stocks like Exxon (XOM), Chevron (CVX), Conoco (COP), BP (BP), and Sunoco (SUN), as these stocks track crude well, but don't explode like these chemical stocks have in the past when crude trades higher.

The stocks that hit MY RADAR are: Sociedad Quimica y Minera (SQM), Terra Industries (TRA), Agrium (AGU), and Potash (POT). Looking at a chart of the United States Oil Fund (USO) versus each of these companies, it looks as if SQM is the strongest one to have in case crude rises. Two major parts of SQM's business are Lithium and Fertilizer. Parts of the company's profile are taken directly from Reuters.


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