DXO is an ETF (exchange-traded fund) and I?m not sure but I think USO is an ETF also. These are ?funds? comprised of various actual oil companies that actually and simply trade just like individual stocks. Instead of just buying Exxon for instance, you can buy one of these and, in essence, buy a whole group of oil company stocks just like a mutual fund.
:-\They?re very positively correlated to the price of crude oil and, as a result, to gasoline as well. And yes, if you buy these and the price of gas goes up, it is likely, but not assured, that this equity-market play/hedge will offset that rise. By the same token, if gas continues to fall and you?re paying less at the pump, you will likewise likely lose money on the hedge. And even in the event of wanting to try and hedge your gas-pump exposure, there?s the issue of ?how much? of these ETFs to buy relative to how much gas you buy. This is called a hedge ratio. Then there?s also the correlation of either of these to the gas-pump price (i.e. do they go up at the same rate?). So, theoretically, yes, these can be used as hedges against a return to high gas prices. But there?s a lot of other considerations that go into an effective hedging strategy and the risk management thereof.