What is the best way to track oil prices through a stock? Would it be Xom? (EXXON) or what would it be?

I am in a business class and i need to invest in a stock that is directly related to gas prices/oil prices. Which stock should i choose?What is the best way to track oil prices through a stock? Would it be Xom? (EXXON) or what would it be?
To answer your question,





You can buy USO which tracks directly (very very close) to the price of crude oil. It trades like a stock, but like GLD (at 1/10 of price) and SLV, it's valued at a ratio to the actual commodity.





Else, if you rather track a sector, you could choose OIS (oil services) or OIH (Oil holders), etc. to be in tune with the prices of oil related firms.





For more info on these you can go to amex.com or holders.com.





As for XOM, that's just one company and although approx 73% of the stock price will move in tune with the market and sector, XOM's stock price can still fluctuate with some volatility related specifically to the company (e.g. can someone say backdating of options) and not related to the the price of oil), so that's why I recommended the other items for what you had asked.





Hope that helps!What is the best way to track oil prices through a stock? Would it be Xom? (EXXON) or what would it be?
try the drillers and know that they are ahead of the price
I've found that APA tracks it pretty well. But the oil sector index is a good one too.
XOM is a good oil stock - the oil indexes are XOI %26amp; OIX is you want to follow vs XOM





oil stocks have been selling off
Try symbol USO.......
Better invest on a related index, like SP Energy sector index.
There is not a direct connection. Stock price is based on value of the company who issued the stock. Oil prices are based on assorted market forces. The major oil companies have many types of products and services, besides drilling and refining oil. It is possible for oil prices to go up and stock value of an individual company go down.
For an oil stock play, try XLE, an oil SPDR. It tracks the big oil and energy SP 500 companies.
The only ';stock'; that directly tracks (or is supposed to track) is USO - the oil ETF.
CRB index or OIL EFT