Cheap Oil Crimps Canada ETFs

Meanwhile, the Republican victory in Congress has increased the likelihood of passing the Keystone XL crude oil pipeline project. However, as oil prices remain depressed, more are wondering about the viability of going forward with the project. [Canada ETFs Rally As Republicans Plan Keystone Legislation]

The project may also come under fire in the months ahead as more market observers anticipate even lower prices. For instance, however Jonathan Hoenig of CapitalistPig.com argues that WTI futures could fall as low as $50 due to slowing global economy, reports Suzanne O’Halloran for Yahoo! Finance.

Goldman Sachs anticipates WTI prices to dip to $70 per barrel by the second quarter of 2015. The U.S> Energy Information Administration predicts that oil will average $77.75 per barrel next year.

Meanwhile, uncertainty over the supply response from the Organization of the Petroleum Exporting Countries, notably Suadi Arabia, along with a strengthening U.S. dollar could continue to weigh on oil prices as well. [Inverse ETF Ideas to Capitalize on Falling Oil Prices]

Guggenheim Canadian Energy Income Fund

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Max Chen contributed to this article.