Oil exchange traded funds were higher Tuesday after OPEC boosted its forecast for global oil demand by 1.9 million barrels a day through 2015.
However, the Eurozone debt crisis and a sluggish U.S. economy are risks to the global recovery, OPEC said in an annual report.
“The recovery has in fact been swifter than expected,” OPEC’s Vienna-based secretariat said in a Bloomberg report. “Risks appear skewed to the downside, especially since the sovereign debt crisis in some EU countries seems to be spreading and the world economy slowing down further.”
Crude futures were trading around $96 a barrel Tuesday morning. [Oil ETF Rallies 50% from Low]
U.S. Oil Fund (NYSEArca: USO) is up more than 10% over the past month and is testing its 200-day moving average. The ETF hasn’t made a sustained push above the 200-day average since dropping below the key technical level in June.
U.S. Oil Fund