One day, oil prices and related exchange traded funds (ETFs) are down, the next day, they soar again. Today is no exception: oil jumped more than $3 a barrel and set a new record: $127.82.
Not only is the summer travel season impacting prices, but concerns over China’s demand for fuel in the wake of earthquakes, reports Pablo Gorondi for the Associated Press. Technical trading is also being eyed as a cause – it takes price patterns and other technical data into account instead of supply and demand.
Naturally, oil, oil equipment and other energy ETFs rose on the news, including:
- United States Oil (USO), up 32.3% year-to-date
- United States Gasoline (UGA), up 17.8% since Feb. 28 inception
- iShares Dow Jones US Oil & Gas Exploration (IEO), up 21.1% year-to-date
