Meanwhile, weak economic data coming from the U.S. does not help the outlook for oil. Oil prices are projected to weaken over the second half of the year as international political tensions are high and the global economy slows, said Peter Voser, CEO of Royal Dutch Shell, on CNBC.
Commodities don’t have expected returns that are based on fundamentals like stocks and bonds do. The price rests completely on supply and demand, reports Levisohn.
“Global demand is softening, we have got recessionary elements in Europe, a small slowdown in Asia Pacific,” Voser told Reuters in an interview on the sidelines of the World Gas Conference in Malaysia’s capital. [Stock ETFs Can’t Shake Euro Fears]
PowerShares DB Commodity Index ETF
Tisha Guerrero contributed to this article.