Oil Hits $98 – Affects Energy And Commodity Related ETFs
November 7th at 1:00am by Tom Lydon
Commodity and oil-related exchange traded funds (ETFs) should get a boost today as oil rose to a new record of $98 a barrel in Tuesday trading. Concern about declining supplies and OPEC’s lack of motivation to increase production is the latest issue according to the AP. Bombings in Afghanistan, an attack on the Yemeni oil pipeline and declining inventories were all contributors to the rise in price. John Wilen of AP reports that Afghanistan doesn’t produce much oil, but any possible escalation in the conflict there could spill into other area countries, disturbing Middle East oil supplies.
Light, sweet crude for December settled at a record $96.70 a barrel. Gas prices continue to rise with the price of oil and many are wondering when we’ll see relief at the pumps.
United States Oil (USO), PowerShares DB Commodity Index Tracking Fund (DBC) and iShares S&P GSCI Commodity Index Trust (GSG) all reached new highs today. USO tracks the price of oil, while light crude makes up 35% of DBC and about 45% of GSG.
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