The oil services exchange traded fund (ETF) pulled back slightly yesterday after rising for four consecutive sessions. Oil Service HOLDRs (OIH) finished the session down 0.6%.
Earlier in the day, it had moved higher on concerns about the bombing of a major pipeline in Iraq. Today, fears have eased somewhat on news that the line will probably be repaired by tonight. The dollar strengthened, too, cutting into any investor appetite for crude oil, reports John Wilen for the Associated Press.
Oil looks like it could go either way at this point, and even analysts can’t seem to agree on the direction it will take. Some think prices will hit new records as the Federal Reserve cuts interest rates (which weakens the dollar). But other analysts don’t think the high prices are justified when the supplies are so high as demand falls.
In other words, it’s anyone’s guess.
Other oil ETFs are:
- United States Oil (USO), up 13.1% year-to-date
- iShares Dow Jones US Oil & Gas Exploration (IEO), up 3% year-to-date
- iShares Dow Jones US Oil Equipment (IEZ), down 6% year-to-date
- SPDR S&P Oil & Gas Equipment Services (XES), down 4.9% year-to-date
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.