Oil ETFs: Reasons The Run May Not Be Over

The price of crude oil and its exchange traded funds (ETFs) have been creeping up and there are signs that indicate the commodity could very well continue to rise.

Most recently, crude has soared north of $80/barrel and Lee Loweel of Investment U states that the price could continue to rise as hedge funds that have been sitting on the sidelines for months begin  to find a home in the oil markets.

Additionally, there are plenty of signs indicating that the U.S. economy is finally getting out a recession, emerging and frontier markets are expanding, growing and developing exponentially and the U.S. dollar continues to remain volatile.

With this in mind, in addition to some concerns of supply and demand, crude has a few factors supporting that a sustainable price could be be attained. There are several ways to gain exposure to the oil market with ETFs, including through the use of funds that trade futures or hold stocks of oil companies.

• United States Oil Fund (USO): up 23.3% year-to-date

• SPDR S&P Oil & Gas Exploration & Production (XOP): up 35.9% year-to-date

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