Energy and oil are slippery topics right now, as analysts are trying to call a direction with natural disasters and economic factors to weigh in on the health of related exchange traded funds (ETFs).

Hurricane Gustav threatened to be a major disruption in oil and gas production in the Gulf, and the recent downward trend of the price of oil has analysts and economists divided, reports Jeff Benjamin for Investment News.

Some observers think the price of oil was ready for a short rally despite the storm, and that the general price direction would continue to trend downward. Others claim it’s a demand theory and feel that prices can simply shoot up and break down in a matter of days.

The recent wave of alternative energy sources and the permeating global recession has put away any notions of oil going above $200 per barrel, for now at least. Energy prices must correlate with other macroeconomic trends and they do not support oil prices shooting up any time soon.

ETFs that focus on oil:

• iPath S&P GSCI Crude Oil Total Return Index ETN (OIL), up 13.9% year-to-date
• United States Oil (USO), up 13.8% year-to-date
• PowerShares DB Oil (DBO), up 18.2% year-to-date

And remember to stick to your strategy and don’t try to call a bottom.

Tags: DBA, Energy, Oil, USO