Oil ETFs Rise as Oil Prices Hit Record $86

October 15th at 3:30pm by Tom Lydon

Oil_etfs_2 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

Uso_etf_chart

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

Tickers

USO