Appel's oil strategy: A trio of energy plays

“Although crude oil prices are up some 30% in 2008 and gasoline is over $4 a gallon, most energy stocks have not kept pace,” notes Gerald Appel.

In his Systems & Forecasts, the technical expert asks, “What are the implications for one’s strategy and where should you be placing your energy investments.”  Here, he looks at US Oil Fund (NYSE: USO), PowerShares DB Energy (NYSE: DBE) and ExxonMobil (NYSE: XOM).

"After Hurricane Katrina disabled some US refineries in August 2005, there was a shortage of capacity.

"As a result, the spread between the cost of crude oil and the prices of refined products (gasoline, jet fuel, diesel, etc.) widened, reflecting above-normal profit margins for refiners.

“Since October 2005, however, refining margins have been volatile in the US, spiking in April 2007 and falling sharply since then, as prices of refined petroleum products have not