Oil Stocks Rally On Anticipation Of Stricter Russian Sanctions: Here's How ETFs Are Reacting

Chandrima Sanyal

January 10, 2025

Oil prices are heating up, and so are the stocks of major energy companies.

Shares of Chevron Corporation (NYSE:CVX), Occidental Petroleum (NYSE:OXY), and ConocoPhillips (NYSE:COP) were trading in the green at the last check on Friday. The rally follows a Reuters report suggesting the U.S. is preparing its most stringent sanctions yet against Russian oil.

These sanctions, expected to target 180 vessels, major oil companies, and top executives, have already pushed oil prices to $80 per barrel — a level not seen since October 2024.

Traders are responding to the anticipated disruption in global oil supply, and some ETFs with oil and energy exposure stand to reap the benefits.

What This Means For ETFs

The United States Oil Fund (NYSE:USO) was trading 3.73% higher as of 12.13 P.M. EST
The Invesco DB Oil Fund (NYSE:DBO) rose about 3.84%.
The United States 12 Month Oil Fund (NYSE:USL) posted a 2.21% gain.
The Energy Select Sector SPDR Fund (NYSE:XOP), with an expense ratio of 0.09% and a 91.26% exposure to the Oil, Gas & Consumable Fuels make it a good bet for investors of oil-focused ETFs. The portfolio includes Exxon Mobil, Chevron and ConocoPhillips.
Vanguard Energy ETF (NYSE:VDE) has an expense ratio of 0.10% and like XOP, Exxon Mobil, Chevron and ConocoPhillips enjoys significant weightage in the fund.

Geopolitics and Market Dynamics

Sanctions on Russia — one of the world's largest oil producers — are expected to tighten supply. Prices are expected to go higher. Ongoing reduction in U.S. crude stockpiles, particularly at the Cushing, Oklahoma hub, as reported by Reuters, adds to the pressure.

While tighter supplies drive prices upward, concerns about demand persist. China’s fuel oil imports are likely to fall early 2025 thanks to a hike in oil import tax from Jan. 1.

Weaker demand from China, one of the biggest crude oil importers, could weigh on prices in the longer term.

See Next:

OPEC+ Extends Oil Output Cuts To Late 2026: What It Means For Markets

Photo: Shutterstock

Recommended

The Tesla Shock Nobody Sees Coming - Ad

Copper's Spiking - And This Junior Has the Grades to Match - Ad

How to Hack a $1.3T Market - Ad

WASHINGTON (AP) — President keeps saying that Republicans' mega legislation will eliminate taxes on federal benefits.

Trump Says Jerome Powell Should 'Resign Immediately' After FHFA Director Alleges Fed Chair Lied About $2.5 Billion Renovation Plan

In Big Tech Just Before Congressional Hearing: ReportTrump wants Powell gone over testimony liesTrump demands Powell's resignation after accusations of misleading testimony from Federal Housing Finance Agency Director. Trump has been critical of Powell in the past.

Back This Medical AI Tech

Back This Medical AI Tech - Ad

You don't often find healthcare tech company valued at $4M. HeartSciences is an exception. With $75M invested, including R&D, clinical trials, and product development, their patented AI software is approaching FDA submission, a potential major inflection point.

Dubai’s booming restaurant scene is feeling the heat of high costs and high failure rates

DUBAI, United Arab Emirates (AP) — From suspended tables to underwater lounges, some 13,000 food and drink establishments in Dubai pull out all the stops to attract customers in one of the world’s most saturated dining markets.

Shaquille O'Neal Wants $50 Million From Lakers Following $10 Billion Sale

Citing his past contributions to the Laker's success, Shaquille O'Neal jokingly requested a $50 million payout after a $10 billion sale.

This Rare Metal Spiked 300%-And One Tiny Firm May Be Riding the Surge

This Rare Metal Spiked 300%-And One Tiny Firm May Be Riding the Surge - Ad

Antimony prices soared last year, but few investors noticed. One firm, sitting on a historic deposit, is perfectly positioned to benefit as demand grows for defense.

OPEC+ to boost oil production by 548,000 barrels per day in August

NEW YORK (AP) — Eight members of the OPEC+ alliance of oil exporting countries say they will boost production by 548,000 barrels per day in August in a move that could further reduce gas prices this year.

Cargo ship carrying new vehicles to Mexico sinks in the North Pacific weeks after catching fire

ANCHORAGE, Alaska (AP) — A cargo ship that had been delivering new vehicles to Mexico sank in the North Pacific Ocean, weeks after crew members abandoned ship when they couldn’t extinguish an onboard fire that left the carrier dead in the water.

Special Gold Investment Soars 2,300% ... 5,090% ... 9,850%

Special Gold Investment Soars 2,300% ... 5,090% ... 9,850% - Ad

Gold just hit $3,500-its highest level ever. My team, with nearly 100 years of gold wins, has found a rare opportunity we believe could be great for investors-just like 98 others we identified from the last bull run. See why this gold play could shine brightest in 2025.

Iran’s president orders country to suspend cooperation with UN nuclear watchdog IAEA

DUBAI, United Arab Emirates (AP) — Iran’s president on Wednesday ordered the country to suspend its cooperation with after American and Israeli airstrikes hit its most-important nuclear facilities, likely further limiting inspectors' ability to track Tehran's program that had been enriching uranium to near weapons-grade levels.

7 Indicted After $100 Million Worth Of Gems, Gold Vanish In Largest Jewelry Heist In US History

7 men indicted for largest jewelry theft in US history, stealing $100M worth of gems & watches from Brinks truck.

Gold Just Hit Another Record. This Junior Could Be Next.

Gold Just Hit Another Record. This Junior Could Be Next. - Ad

This copper junior was the smallest company invited to a top global mining conference. With nearly 1B pounds CuEq and 50,000m of funded drilling, this story won't stay quiet for long.

Meta, KKR, Lululemon And An Industrial Stock On CNBC's 'Final Trades'

Experts predict KKR, Lululemon, Meta Platforms, and Rockwell Automation to perform well.

Kevin O'Leary Says 'It's Not About The Money Anymore,'—He Just Wants To Prove The Haters Wrong

Kevin O'Leary finds motivation in proving critics wrong, learned from Steve Jobs to focus on essentials and ignore criticism.

Copper's Rally Is Back. This $31M Junior Is Sitting on a Potential Fortune

Copper's Rally Is Back. This $31M Junior Is Sitting on a Potential Fortune - Ad

A high-grade copper-gold discovery in Quebec just delivered extremely high grade intercepts. Valuation? Just $31M. With copper breaking out, the timing here could be perfect. Get the symbol here.

Trump Hit With Backlash Over Use of Antisemitic Slur at Iowa Rally

President Trump faced criticism from Jewish leaders and lawmakers on Friday after using a term historically associated with antisemitic stereotypes.

Mark Cuban Raises Employee Wages After Learning Of Government Aid Dependence

Mark Cuban, owner of the NBA's Dallas Mavericks, expressed his dismay upon learning that some of his employees were reliant on government aid programs.

Is Elon's Empire Crumbling?

Is Elon's Empire Crumbling? - Ad

Jeff Brown - the legend who called Tesla and Nvidia early - says Elon is about to launch a $25T AI revolution. This isn't another chatbot. It's real-world AI that could 14X the impact of ChatGPT. But after July 23rd, it may be too late.

Cash-Rich IonQ To Capture 20% Of Quantum Market By 2035

IonQ shares climb as investors rally behind its bold quantum growth strategy and long-term market potential.

Ex-Obama Treasury Secretary Jack Lew Sounds Alarm On NYC Under Zohran Mamdani: 'I Worry Deeply'

With Zohran Mamdani officially securing the Democratic nomination in the New York City mayoral race, centrist figures within the Democratic party, such as former Treasury Secretary Jack Lew, are raising questions on the city's future under a self-described Democratic Socialist.

China Just Cut Off a Critical Metal-Now the U.S. Is Racing to Replace It

China Just Cut Off a Critical Metal-Now the U.S. Is Racing to Replace It - Ad

With China imposing export bans and the Pentagon labeling antimony a Tier 1 priority, domestic sources are scarce. One firm may have just found a path forward.

This Stock Just Popped 30% In 5 Days — Now Expert Says It 'Looks Potentially Explosive'

Experts have been betting on the growth prospects of Oscar Health, as it surged by 16.51% on Wednesday and 32.56% in the last five days.

650% Later, Rocket Lab CEO Isn't One Bit Worried

Rocket Lab CEO Peter Beck highlights strong demand for launches from both commercial and government customers.

The Tesla Shock Nobody Sees Coming

The Tesla Shock Nobody Sees Coming - Ad

While headlines scream "Tesla is doomed"...Jeff Brown has uncovered a revolutionary AI breakthrough buried inside Tesla's labs. One that is helping AI escape from our computer screens and manifest itself here in the real world all while creating a 25,000% growth market explosion starting as early as July 23rd.

Thinking about taking a stab at IV therapy? Ask some questions first

IV therapy clinics are springing up around the country, touting quick ways to recover from a hangover or a hard workout. But doctors and regulators preach caution.

BigBear.Ai, Rigetti Computing, Datadog, Oracle, And Tesla: Why These 5 Stocks Are On Investors' Radars Today (CORRECTED)

U.S. stocks experienced a surge on Wednesday, with the S&P 500 setting new record highs following a surprising decline in private payrolls.

Copper's Spiking - And This Junior Has the Grades to Match

Copper's Spiking - And This Junior Has the Grades to Match - Ad

Copper is climbing again - and this time, it looks tariff-proof. A $31M junior just posted nearly 1B lbs of copper equivalent. With insiders and institutions piling in, this could be the next breakout.

Ford recalls more than 200,000 vehicles over malfunctioning rearview camera

Ford Motor Co. is recalling more than 200,000 vehicles because a software defect can cause the rearview camera to fail, increasing the risk of a crash and injury.

Diddy Jury Deadlocked On Racketeering Conspiracy Charge As Verdicts Reached On Sex Trafficking Counts — Jurors To Return Wednesday

Jurors in Sean "Diddy" Combs' trial reached verdicts on four charges related to sex trafficking but remain deadlocked on the racketeering conspiracy charge, with deliberations set to continue.

How to Hack a $1.3T Market

How to Hack a $1.3T Market - Ad

Forget concrete. The new foundation for real estate success is digital, and Pacaso leads the way. Their tech unlocks a $1.3T real estate market. They've already earned $110M+ in gross profits in their operating history and reserved the Nasdaq ticker PCSO.

Sonnet BioTherapeutics Drops 5% Intraday, Rebounds 14% After Hours Amid Delisting Concerns

Sonnet BioTherapeutics Holdings Inc. (NASDAQ: SONN) fell 5.54% on Thursday to close at $3.92, before rebounding 14.29% in after-hours trading to $4.48, amid concerns of a potential NASDAQ delisting.

Women can be drafted into the Danish military as Russian aggression and military investment grows

HOVELTE, Denmark (AP) — Peering across a dense stretch of woodland outside of Denmark's capital with camouflage paint smeared across her face, 20-year-old Katrine scans the horizon for approaching threats.

Back This Medical AI Tech

Back This Medical AI Tech - Ad

Palantir, Anduril, Erebor: Peter Thiel, The Lord Of The Finance Rings

Palantir, Anduril and Erebor borrow their names from Tolkien's "The Lord of the Rings."

U.S. employers likely added 115,000 jobs last month as labor market continues to cool

The steady slowdown in U.S. hiring likely continued in June as President Donald Trump’s trade wars, federal hiring freeze and immigration crackdown weighed on the American job market.

This Rare Metal Spiked 300%-And One Tiny Firm May Be Riding the Surge

This Rare Metal Spiked 300%-And One Tiny Firm May Be Riding the Surge - Ad

Antimony prices soared last year, but few investors noticed. One firm, sitting on a historic deposit, is perfectly positioned to benefit as demand grows for defense.

Trump's 'Big Beautiful Bill' And Its Impact On Bitcoin, America's Debt Crisis And Robinhood's Blockchain Move: This Week In Crypto

President Donald Trump's "Big Beautiful Bill" has sparked market buzz for its potential to fuel Bitcoin adoption amid inflation fears.

Nations are meeting to drum up trillions to combat poverty — but the US isn't going

UNITED NATIONS (AP) — Many of the world’s nations are gathering starting Monday in Spain for a high-level conference to tackle the and try to drum up trillions of dollars needed to close it. The United States, previously a major contributor, pulled its participation, so finding funding will be tough.

Special Gold Investment Soars 2,300% ... 5,090% ... 9,850%

Special Gold Investment Soars 2,300% ... 5,090% ... 9,850% - Ad

Greenland has a message for the rest of the world: Come visit

NUUK, Greenland (AP) — has a message for the rest of the world: We’re waiting for you.

Trending Now

Jeff Bezos, Lauren Sanchez Get Married In A $50 Million Wedding In Venice: From Foam Party On His $500 Million Yatch To Goodie Bags, Here's What We Know