“This commodity pool, which is marketed as an exchange-traded product, invests in short-dated futures contracts for unleaded gasoline as traded on the New York Mercantile Exchange,” Morningstar analyst Abraham Bailin writes in a recent report on U.S. Gasoline Fund.
“These contracts are typically close, though rarely equal, to spot prices for gasoline,” Bailin said. “Gasoline prices are highly correlated to crude oil, but they are also subject to seasonal volatility and refiner-related capacity issues.”
Oil ETFs were lower Monday morning on reports Muammar Gaddafi has accepted a peace plan to end the conflict in Libya.
U.S. Gasoline Fund