This Day On The Street
Continue to site right-arrow
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!

5 Stocks That Can Offset Pain at Pump

Stocks in this article: COP CVX VLO CLB SU

By Joseph Lazzaro, DailyFinance

NEW YORK ( DailyFinance) -- Most U.S. motorists know what's probably coming this summer to a gas station near them: scorchingly high gas prices.

Intensifying civil war in Libya has already cut that nation's oil exports to about 25% of capacity, pushing crude prices above $105 per barrel -- triggering a quick 40-cent increase in the average U.S. price for regular unleaded to $3.50 per gallon.

However, that price may look low for the rest of 2011, for two reasons: 1) the risk premium that institutional investors are paying on oil futures because of concern that the unrest could spread to Saudi Arabia or Iran; 2) the U.S. summer driving season, during which gasoline demand rises, enabling both oil companies and local gas stations to raise prices without risking a decline in customer traffic.

More from DailyFinance
Is Concentrated Solar Technology Ready to Rise?
As the U.S. Picks Up Steam, Emerging Markets Still Hold Promise
General Motors Recalls 10,000 Vehicles for Defroster Glitch

So, until political stability returns to the Middle East, this summer's average U.S. gas price will likely exceed the record near $4.15 per gallon set in the summer of 2008. And in higher-cost metropolitan areas such as Los Angeles, San Francisco, New York and Boston, gasoline could approach $5 per gallon for super unleaded by the Fourth of July.

If popular uprisings seeking regime change hit the major oil exporters of Saudi Arabia or Iran, let's just say U.S. gasoline prices are going to hit truly head-spinning levels.

If You Can't Beat 'em, Profit From Them

How can U.S. motorists cope? You can wait for Congress to pass an energy policy that encourages fuel efficiency and that weans the nation off oil. But don't hold your breath: Any such bill is a nonstarter with the Republican Party controlling the House. (The GOP may, however, favor a temporary suspension of the 18.4-cent federal gas tax -- a modest money-saver, but every reduction helps.)

If you haven't already made the switch, now may be a good time to consider a higher-MPG car or SUV, even if it's a used vehicle. All other factors being equal, a switch to 25-mpg vehicle from an 18-mpg vehicle will reduce your gas consumption by about 30%.

Here's another way: Consider investing in an oil play.

If you can't tolerate the higher risk associated with owning individual stocks, go for an oil-industry-related mutual fund or exchange-traded fund, as DailyFinance's Matthew Scott has outlined. However, if you can tolerate such risk, you may fare better with some individual stocks.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!


DOW 17,878.91 +74.11 0.42%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • 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