How to Play Skyrocketing Oil Prices

How to Play Skyrocketing Oil Prices

Unrest in the Middle East, particularly turmoil in Libya and Syria, has sent oil prices soaring to their highest levels in two years. While this is never good news for consumers, oil companies the world over stand to benefit greatly by this price spike. The sharp uptick in price is affecting both the Brent Crude, which is the pricing benchmark for much of the world, and the West Texas Intermediate, or WTI, which is widely used as the standard in the U.S.

In this video, Motley Fool energy analyst Taylor Muckerman sits down with host Alison Southwick, to discuss one company that he sees as well-positioned to take advantage of the spikes in both benchmarks, Marathon Oil . Taylor tells investors about why this company is uniquely poised to benefit from a price increase to both the Brent and the WTI benchmarks, and also how it is taking big steps to limit its exposure to Libya.

Taylor also discusses why Marathon Oil stands to gain more from increases in oil prices than some of the biggest players, such as Exxon or BP , and tells investors why this could not only strengthen Marathon's ability to sustain its current dividend, but that it could also potentially translate into even higher dividends down the road.

Record oil and natural gas production is revolutionizing the United States' energy position. Finding the right plays while historic amounts of capital expenditures are flooding the industry will pad your investment nest egg. For this reason, the Motley Fool is offering a comprehensive look at three energy companies set to soar during this transformation in the energy industry. To find out which three companies are spreading their wings, check out the special free report, "3 Stocks for the American Energy Bonanza." Don't miss out on this timely opportunity; click here to access your report -- it's absolutely free.

The article How to Play Skyrocketing Oil Prices originally appeared on

Alison Southwick owns shares of ExxonMobil. Taylor Muckerman has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.