Energy exchange traded funds (ETFs) have been abuzz for 2008, thanks to the price of light, sweet crude oil reaching historic highs, today over $139 a barrel. This week, we’ve seen the the biggest two-day spike in oil prices ever.

The question is, have commodity prices peaked or is there more upside opportunity? If you don’t have a commodity allocation, it’s not too late. If commodity prices continue to rise, gains in commodity ETFs will offset your gas bills and hedge your portfolio. However, if commodities have peaked and correct from these levels, global markets should benefit.

U.S. consumers are used to lower gas prices in relation to other consumer purchases. The energy streak could go on for a period of time as global supply has been slow to increase. Demand for oil is rising the fastest in the high-growth emerging market economies, putting a stain on supply. Morgan Stanley expects strong demand in Asia that could drive prices to $150 by July 4th, reports Adam Schreck of AP.

• United States Oil Fund (USO) up 37.2% year-to-date
• United States Natural Gas Fund (UNG) up 63.3% year-to-date
• SPDR S&P Oil and Gas Exploration and Production (XOP) up 31.5% year-to-date
• iShares Dow Jones US Oil Equipment & Services Fund (IEZ) up 19.3% year-to-date

Tags | Energy, Gas, Natural Gas, UNG, USO