Long-term supply is dependent on investments in oil production and new ways of oil extraction. If prices are low, then the likelihood of such investments is diminished, which could result in future shortages.
Oil today is continuing its downward slide, at $42.24 a barrel. It’s a nearly four-year low, and is 70% off the all-time high of $147.27 reached in July.
A couple of oil ETFs that mirrored the downward spiral of oil prices include:
- United States Oil Fund (USO): down 53.3% year-to-date
- PowerShares DB Oil Fund (DBO): down 45.1% year-to-date
- iPath S&P GSCI Crude Oil Tot Ret Idx ETN (OIL): down 58.7% year-to-date