Exchange traded funds (ETFs) that focus on oil have been among the biggest losers lately. Nancy Gondo of Investor’s Business Daily reports that mild weather is the reason energy stocks have fallen. With warmer weather there has been low demand for heating oil and natural gas. Short-term, the reason is the weather but any longer and the focus is on OPEC production cuts along with the economy.
Crude oil prices have fallen to around $55.00 a barrel. This drop has effected the oil ETFs too. Oil Services HOLDRs (OIH) is down 7% this week, as is iShares Dow Jones U.S. Oil and Equipment (IEZ) and Energy Select Sector SPDR (XLE) is down 6%.
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.