The Associated Press reports that demand has particularly been driven by the growing economies in India and China. On top of that tension in oil-producing countries such as Nigeria and Iran is rattling investors’ nerves. Violence in Nigeria is what finally pushed oil to its all-time high. Militant attacks have cut Nigeria’s oil output by 20% since 2006. On top of that, there is word that several Mexican oil export ports have closed because of rough weather.
ETFs that track oil futures have been showing positive movement so far today. Keep an eye out to see if the madness continues:
- United States Oil (USO)
- PowerShares Dynamic Oil and Gas Services (PXJ)
- SPDR S&P Oil & Gas Exploration & Production (XOP)