It seemed like it was just yesterday when oil was around 150 bucks with predictions of $200 per barrel floating around. But now we are hoarding the black stuff on supertankers and in our oil inventories for what looks to be in preparation for the end days, writes Zoe Van Schyndel for The Motley Fool.

The world markets are flooded with oil, a boon for consumers, so enjoy it while it lasts. Eventually, stagnant developed countries will gulp down the excess supply and bring prices back up. Furthermore, OPEC has already vowed to cut oil production, which could further nudge up prices if the organization keeps its word.

There are many different exchange traded funds for the enthusiastic investors seeking to strike it rich in oil. One may look into an ETF that tracks stocks such as the Energy Select Sector SPDR (XLE), down 1.8% the last month, which tracks oil companies and natural-gas companies.

Or you may favor trading on oil prices directly in ETFs such as::

• ProShares Ultra DJ-AIG Crude Oil ETF (UCO) is a commodity pool designed to go up or down two times the rate of its index. It is down 24.3% in the last month with an expense ratio of 0.95%.

• PowerShares DB Crude Oil Double Short ETN (DTO) is an exchange traded note that also doubles the return of its index in the opposite direction, hence the name “short.” It is up 23.2% in the last month with an expense ratio of 0.75%.

• United States Oil Fund (USO) includes listed crude oil future contracts, oil-related futures, forwards, and swap contracts. It is down 5.5% in the last month with an expense ratio of 0.45%.

Take note that these funds may not be as tax-efficient as other ETFs so consult your tax adviser.

Sam Patel for TheStreet reports that the top ETF performers for the third quarter were the inverse, or short, ETFs. These funds are designed to go up whenever the markets go down.

As with any investment, it’s wise to be aware of the risks. While these funds do present opportunities in down markets, investors need to use them with caution. While market whipsaws in a negative direction can bring good news, those in a positive direction can cause quick losses.

Some of the top short ETFs for the third quarter and their performance numbers include:

• UltraShort Basic Materials (SMN), up 85.3%
• PowerShares DB Oil 2X Short (DTO), up 76.5%
• PowerShares DB Commodity Double Short (DEE), up 70.4%
• PowerShares DB AGR Double Short (AGA), up 67.9%

Wall Street’s most recent week has also seen some stunning losses that have benefitted these funds. Among the top short ETFs this week, shown with a one-week performance chart, include:

• Rydex Inverse 2x S&P Select Sector Energy (REC), up 69.2% (black line)
• ProShares UltraShort Telecommunications (TLL), up 79% (green line)

Read the disclosure, as Tom Lydon is a board member of Rydex Funds.

There were a number of days that had both gains and losses in the hundreds of points, including yesterday, in which the Dow Jones Industrial Average plummeted nearly 800 points. It was the biggest one-day point loss ever for the index. The Dow ended the month down 6% and the quarter down 4.7%. The S&P 500 lost 9.2% for the month and 9.4% for the quarter. Click here to see our ETF performance report to see how different asset classes, sectors and global regions performed for the quarter.

This is also the quarter in which oil began its long descent. Oil closed the second quarter at $140 a barrel. While it rose on the final day of trading for the third quarter to settle at $100.64, it’s still a loss of 28.1%. In fact, the PowerShares DB Crude Oil Double Short ETN (DTO) was one of the quarter’s strongest funds, gaining 77.6%.

For the month of September, the top fund was the KBW Regional Banking (KRE). It seems a little counter-intuitive, but regional banks have largely managed to dodge the troubles that have plagued the larger financial institutions. The fund rose 11.7% this month. It was also the top fund for the quarter, gaining 33.2% over the last three months.

Metals and mining was the hardest-hit sector, with the SPDR S&P Metals and Mining (XME) losing 34.6% for September.

Russia took a big hit in the third quarter, as Market Vectors Russia (RSX) fell 45.3%. The fund is 50.9% off its high, which was hit on May 19.

Crude oil fell to $108.77 a barrel in mid-day trading today, reports Tim Pardis of the Associated Press.  ETFs leveraging oil have been top performers in trading today.  Transportation has been reacting positively to the falling price as well.  Energy-related ETFs have dropped along with the price of oil. 

Worries in the financial sector were also eased as news that Korea Development Bank is in talks about acquiring Lehman Brothers (LEH).

A report on supply management showed manufacturing activity was down slightly in August, but this was expected, and that inflation slowed.

ETFs reacting to the news today, and their mid-day performance:

• PowerShares DB Crude Oil Double Short ETN (DTO), up 11.6%
• iShares Dow Jones Transportation (IYT), up 1.0%
• iShares Dow Jones U.S. Energy (IYE), down 4.7%
• Financial Select Sector SPDR (XLF), up 1.2%

For full disclosure, some of Tom Lydon’s clients own IYT.

It’s led to a rebound for those funds that were left for the vultures, namely financials and homebuilders.

As assets flow out of commodities, they are becoming the blood that is giving life to financials and homebuilder ETFs, reports Joe Morris for Ignites.

There are signs that the commodities boom may be slowing down, and the U.S. dollar is re-gaining its strength, so which funds are showing a little color?

• KBW Regional Banking (KBE): down 28% year-to-date; up 0.3% in the last month
• SPDR S&P Homebuilders (XHB): down 3.2% year-to-date; up 9.7% in the last month

Another beneficiary to falling prices is short ETFs.

Short funds tracking oil, financial and homebuilding sectors have come out winners during the recent correction within commodities, reports Dow Jones NewsWires.

• PowerShares DB Crude Oil Double Short ETN (DTO): up 20.6% in the last month
• DB Commodity Double Short ETN (DEE): up 18.3% in the last month
• PowerShares DB Base Metals Double Short ETN (BOM): up 7.6% in the last month