AMEX Oil Index
AMEX Oil Index Description
The Amex Oil Index (XOI) represents the corporate sector involved in various aspects of the oil industry in the exploration, production, and development of petroleum resources. The XOI was designed to track the oil-stocks sector; it was established on August 27, 1984 with a benchmark value of 125 index points. Crude oil is one of the most vital economic commodities in the world today.
The AMEX Oil Index is price-weighted; this means its performance is measured according to the changes in the sum of the prices of its component stocks. Price weighting is commonly used in the building of indexes.
The AMEX Oil Index remains the most popular measure of the oil-stock sector today. The XOI also lists options, which are one way investors can place trades on the AMEX Oil index.
The XOIs volume patterns are a key parameter to monitor because trading volume is driven by greed and fear. Volume surges can point to good buying and selling opportunities for investor whishing to speculate on the oil sector. Significant volume surges in oil-stocks tend to occur near major tradable highs and lows.