October 15, 2007 at 3:30 pm by Tom Lydon
As oil prices rose to $86.13 a barrel today for the first time, oil-related exchange traded funds (ETFs) increased as well. Oil prices were supported by concerns Turkish forces will pursue Kurdish rebels into Iraq, disrupting oil supplies, reports John Wilen for the Associated Press. Also contributing to the price increase was the prediction that fourth quarter demand for crude oil will grow by 100,000 barrels a day over last year, according to the Organization of Petroleum Exporting Countries (OPEC). The forecast highlights that crude oil supplies are tight, thus driving up prices. Last week, the Energy Department reported that domestic crude inventories fell during the week when they had been expected to rise.
Some of the oil-related ETFs that are benefiting from the increase in oil prices and their performance year-to-date include:
- iPath S&P GSCI Crude Oil Total Return Index ETN (OIL) – up 24.4%
- United States Oil Fund (USO) – up 24.0%
- Claymore MACROshares Oil Up Tradeable ETF (UCR) – up 20.6%
- PowerShares DB Oil (DBO) – up 9.2% for the last three months, having launched in January
- PowerShares DB Energy (DBE) – up 5.8% for the last three months, having launched in January
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