This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

4 Domestic Oil Stocks With Less Risk

Stocks in this article: EPM SD GEOI KOG

WINDERMERE, Fla. ( Stockpickr) -- Companies that are highly leveraged to the domestic crude oil market look to be in for one heck of a fantastic 2011, now that a number of large oil exporting nations are locked in political unrest.

Unless you live around a rock, you've probably already heard about how strong crude oil is acting on the commodity exchanges. West Texas Intermediate crude for April delivery is currently trading above $101 a barrel, and Brent crude oil is doing even better, trading at around $114 per barrel. The trend is so strong in crude oil that West Texas Intermediate crude registered its largest weekly gain in over two years last week, rising by more than 9%.

The unrest in the Middle East is clearly the catalyst that is helping to push crude oil prices through the roof. The fear in the markets is that the turmoil in Libya, Bahrain, Yemen and Egypt is going to spread throughout the rest of the region and potentially hit some of the largest oil-exporting nations. Some of those fears are starting to become a reality now, with protests already starting to pop up in both Iran and Saudi Arabia.

The Saudis are so concerned about the potential of a political uprising that they've recently announced a huge social benefits package that totaled more than $35 billion and included unemployment benefits, housing subsidies, funds to support the study abroad and a number of new job opportunities created by the state. The Saudis are taking such drastic action because they know if there was to be a toppling of their regime it would destabilize the entire world energy market. For the record, there really is no precedent for what could happen if Saudi Arabia's oil production went offline.

Related: Cramer's U.S. Oil Stocks to Consider

How serious is the situation in Saudi Arabia? Well, it's serious enough when you consider that there's a Facebook campaign calling for a "day of rage" in Saudi Arabia on March 11. The protesters are demanding an elected ruler, greater freedom for women and the release of political prisoners. Keep March 11 on your radar because if the unrest does take hold, it could be a game change for the crude oil market.

1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,583.95 +227.08 1.31%
S&P 500 2,043.34 +30.45 1.51%
NASDAQ 4,717.4370 +73.1250 1.57%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs