by Ian Cooper

With chaos in the Middle East, oil prices are starting to gush higher.

Last trading at $77.18, crude could easily run back to $80 depending on the severity of the escalating issues between Israel and Hezbollah. Not helping, Libya just said oil production and exports in the country would be shut down, “amid a dispute with the internationally recognized western government in Tripoli over who should lead the central bank.”

“The near-term buying seems justified,” said Dennis Kissler, senior vice president of trading at BOK Financial, citing Middle East tensions, Libyan production outages and weak oil inventories at Cushing, Oklahoma, the key U.S. storage hub, as noted by Reuters.

While investors can always jump into oil stocks, like Exxon Mobil (XOM), Chevron (CVX), and Occidental Petroleum (OXY), there are also ETFs to consider, including:

SPDR Energy Select Sector ETF (XLE)

With an expense ratio of 0.09%, the XLE ETF provides exposure to companies in the oil, gas and consumable fuel, energy equipment and services industries, as noted by State Street SPDR. Not only does an ETF allow for diversification, you can buy it for less than a single one of its holdings.

SPDR S&P Oil & Gas Exploration & Production ETF (XOP)

With an expense ratio of 0.35%, the ETF provides exposure to the oil and gas exploration and production segment of the S&P TMI, which comprises the following sub-industries: Integrated Oil & Gas, Oil & Gas Exploration & Production, and Oil & Gas Refining & Marketing, as noted by State Street SPDR.  Some of its top holdings include Callon Petroleum, SM Energy Company, Devon Energy Corporation, EOG Resources, and ConocoPhillips, for example. 

iShares Global Energy ETF (IXC)

The iShares Global Energy ETF seeks to track the investment results of an index composed of global equities in the energy sector. Some of its top holdings include Exxon Mobil, Chevron Corporation, BP PLC, Total SA, and EOG Resources.