The oil exchange traded funds (ETFs) are slipping due to balmy weather across the U.S. The AP article states oil and natural gas prices fell Tuesday amid our mild weather. 2007 supply concerns are evident now that the U.N. sanctions against Iran were approved over the weekend. Iran has decided to continue using uranium enrichment despite U.N. economic sanctions passed Saturday, which were aimed at forcing a rollback in its nuclear program.
Energy Select Sector SPDR Energy (XLE) could be affected by the February delivery of light sweet crude declining to $61.30 a barrel. Also look into the iPath Goldman Sachs Crude Oil Index ETN (OIL). OPEC announced it plans to reduce output by an additional 500,000 barrels a day in February, plus the previous cut of 1.2 million barrels per day.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.