"No Magic Bullet" For Low Gas Prices, & How To Play It (XOM, CVX, COP, OXY, UGA)

Over the weekend,

that there are no "magic bullets" to help bring down gas prices, as the average price around the country nears $4 per gallon. According to a New York Times-CBS News poll obtained by Reuters, 70% of the country believes we are on the wrong track, and gas prices are a major reason for it. In his weekly radio and Internet address, President Obama said, "Now, whenever gas prices shoot up, like clockwork, you see politicians racing to the cameras, waving three-point plans for $2 gas. You see people trying to grab headlines or score a few points. The truth is, there's no silver bullet that can bring down gas prices right away." Obama wants to eliminate $4 billion in annual "taxpayer subsidies" to oil and gas companies, like Exxon Mobil

, Chevron

, ConocoPhillips

, and Occidental Petroleum Corporation

. "That's $4 billion of your money going to these companies when they're making record profits and you're paying near record prices at the pump. It has to stop," he said. Last week, Obama and his administration said they would crack down on speculators and probe potential fraud in the energy markets that affects pump prices. If the government does cut the taxpayer subsidies to the oil & gas companies, then this could be a hit to earnings for these kinds of companies, and traders may want to take advantage of this, by shorting these names, if they believe that the subsidies will be cut. If traders believe the gas prices will continue to rise, then they should consider United States Gasoline

, LP

, which tracks gasoline prices.