There are reasons for investors to be cautious with volatile energy ETFs. Moreover, if oil prices falls to new lows and the shale industry is unable to turn a profit, the highly leveraged industry may find it harder to repay debt obligations. The International Energy Agency (IEA) said the “massive cushion has inflated” on record supplies from Iraq, Russia and Saudi Arabia.
However, there is some hope production will ebb this year.
“To be sure, the U.S. Energy Information Administration sees U.S. and other non-OPEC production declining by hundreds of thousands of barrels per day by the third quarter of 2016,” reports CNBC.
United States Oil Fund
