As discussions over raising the U.S. debt ceiling continue to drag on, concern over a possible U.S. default, and the subsequent plunge in the U.S. dollar’s strength, could provide a surge in oil prices, writes Paul Ausick for 24/7 Wall St.
On the flip side, oil prices may take a turn lower for a number of reasons. For instance, the IEA could announce another release from strategic reserves, slowing growth in developed economies and emerging economies, more notably drops in demand from China, which recently reported that PMI dipped below 50, which may indicate a slowdown.
Some oil ETFs:
- U.s. Oil Fund (NYSEArca: USO)
- PowerShares DB Oil Fund (NYSEArca: DBO)
- U.S. 12 Month Oil (NYSEArca: USL)
For more information on oil, visit our oil category.
U.S. Oil Fund
Max Chen contributed to this article.