Rising gas prices are squeezing consumers as the summer driving season approaches. However, if oil exchange traded funds continue to pull back, it could ease the pain at the pump.
U.S. Oil Fund (NYSEArca: USO) fell more than 2% on Thursday. The $1.4 billion ETF traded below its 50-day exponential moving average for the first time since Feb. 12. The fund tracks crude futures contracts, not the spot price for oil. [Oil ETFs Ride Crude Prices Higher on Supply Concerns]
Oil prices were down for a third straight day to breach key technical support on growing speculation that nations may release strategic petroleum reserves, Reuters reported.
Crude futures were trading around $103 a barrel on Thursday afternoon. [Oil ETFs Rally on Supply Worries, Crude Touches $110]
A gasoline ETF is outperforming the oil fund in the first quarter as gas prices approach $4 a gallon. U.S. Gasoline Fund (NYSEArca: UGA) was up 16% year to date as of March 28, according to Morningstar. [Gasoline ETF Highest in Three Years as Prices Near $4]