Oil prices have jumped above $85 per barrel for the first time in months, driven by geopolitical tensions. The Energy Select Sector ETF (XLE) is up 8% in two weeks as crude supply concerns drive traders into defensive positioning.
The spike is driven by reduced supply expectations and OPEC+ production management that kept supplies tight. Crude is now trading at $85.40, up from $77 just 30 days ago. Stocks like Chevron (CVX, up 12%) and ConocoPhillips (COP, up 10%) are benefiting most.
For investors: energy is cyclical but not dead. A 5-10% allocation provides inflation protection and hedges growth-heavy tech exposure. Set profit targets at $90 oil and trim on de-escalation signals.
