Displaying items by tag: oil

With markets shaky despite record highs, investors are turning to commodity ETFs as a hedge against inflation and uncertainty driven by Trump-era tariffs and policy risks. Commodity prices tend to rise with inflation, making them attractive during volatile periods, and ETFs offer simplified access to hard assets like gold, oil, and copper without the complexity of futures trading. 

The Invesco PDBC fund leads the space with $4.7 billion in assets and diversified exposure, notably in energy and metals, all while avoiding cumbersome K-1 tax forms. Meanwhile, the actively managed First Trust FTGC ETF charges higher fees but provides exposure to a wider range of commodities, including agriculture and precious metals. 

For those focused on specific assets, the iShares Gold Trust (IAU) offers low-cost access to gold, while the CPER fund targets copper futures, riding recent price momentum in industrial metals. 

Finsum:  ETFs provide accessible, diversified, and tax-friendly ways for investors to gain exposure to commodities within traditional brokerage accounts.

Oil prices surged as much as 14% in their biggest intraday jump since 2022 after Israeli airstrikes hit Iranian military and nuclear targets, rattling global energy markets. Though prices later pulled back, Brent and WTI crude still ended up nearly 6% on the day, reflecting heightened investor anxiety over potential disruptions in Middle East supply. 

The attacks avoided Iran’s vital oil infrastructure—like Kharg Island and key pipelines—tempering fears of immediate output losses, but analysts warn that any escalation could still threaten flows through the Strait of Hormuz. 

About 20% of global oil transits that narrow waterway, making it a critical choke point vulnerable to retaliation or blockade. While Iran vowed a strong response, energy analysts say an all-out disruption would hurt Tehran too, particularly as it relies heavily on oil exports to China. 

Finsum: For now, traders are eyeing whether the conflict expands into an “energy-for-energy” tit-for-tat, which could turn market jitters into a full-blown supply crisis.

U.S. farmers are facing a sharp drop in soybean and pork exports to China just as planting season ramps up, signaling serious trouble ahead. With China previously accounting for a major share of demand, especially for these two products, the sudden decline in sales — some dropping more than 70% — is hitting a fragile agricultural sector hard. 

The current trade dispute, now broader and more severe than the 2018 tariff standoff, comes with no clear support for producers and is compounded by related conflicts with other trade partners like Canada. This creates a supply chain crunch, not just at the point of export but also in key input materials like fertilizer, making the hit to farmers multifaceted. 

Domestic consumption isn’t likely to absorb the surplus either, especially as U.S. demand for pork remains soft and efforts like increasing biodiesel requirements are not enough to offset lost international sales. 

For many growers, the loss of access to a market of over a billion consumers could be a lasting blow with no easy substitute.

American Energy Fund (AEF) has broadened its asset-backed investment lineup, opening access to domestic oil and gas projects for qualified investors. The new opportunities include ventures in the Permian Basin and North Texas, featuring on-site briefings and a focus on operational transparency. 

AEF believes that in today’s turbulent markets, energy investments are regaining appeal as a reliable asset class. These offerings are limited to accredited investors, meaning participants must meet specific wealth, income, or professional standards set by financial regulators. 

By tailoring these opportunities to sophisticated investors, AEF aims to blend performance, visibility, and compliance into its energy investment strategy.

Finsum: The current administration is no doubt making it friendlier for the energy sector, but will tariffs hinder any regulatory ease. 

Energy stocks have outperformed the broader market this year as investors pivot toward companies with strong cash flow and reliable dividends. Despite a slight dip in oil prices, the S&P 500 Energy Select ETF (XLE) has gained nearly 8%, while tech and consumer discretionary stocks have struggled. 

Energy equities appear more resilient to inflation and tariff concerns, with experts noting that U.S. energy exports are less likely to face retaliatory trade measures. Rising natural gas prices, which have surged over 30% in 2025, have further fueled gains for energy companies. 

Some major pipeline firms, like Plains All American and MPLX, have posted double-digit gains year to date. With Brent crude trading above $71 per barrel, analysts anticipate a gradual climb before prices dip later in the year.

Finsum: With rising inflation expectations, energy stocks could be the pathway to avoid the inflation tax or at least offset it in your portfolio.