Make The Most Of Big Moves In Crude Oil And Energy Stocks

The cost of filling up at the pump has become more reasonable over the past eight months as the average price of a gallon of unleaded gasoline in the U.S. has tumbled from $3.97 in early May, down to $3.25 a gallon over the final weekend of 2011.  Even though gasoline has gotten cheaper, crude oil has seen a big spike higher with West Texas Intermediate Crude jumping from $76 a barrel to $98 in the past three months.

For the entire sector, the Energy SPDR (XLE) was up 2.84% in 2011 compared to the 1.89% advance (with dividends) of the SPDR S&P 500 (SPY).   Integrated oil companies were winners, reflecting the flight to large, relatively �safe� dividend-payers as markets tumbled for most of the summer.  Chevron and Exxon Mobil tacked on 20% and 18%, respectively.  ConocoPhillips was up a more moderate 10% for the year.  Oilfield service outfits were mostly losers, with the OIH down 17.3% and Halliburton losing 14.8% in 2011.

For investors who can stomach the volatility, the independent oil and gas producers have put on quite a show.  Cabot Oil & Gas (COG) is up 101% in the past year, 23% in the past quarter.  Since the oil-price rebound began in October, Plains Exploration & Production (PXP) has gained 62% and Denver-based Whiting Petroleum (WLL) has advanced 33% in price.

Check out the Market Blaster video above for ideas to play both bull and bear for 2012 in the energy sector.