- Oil prices and commodity-related ETFs have been strengthening
- Energy prices continued to gain ground after the International Energy Agency (IEA) said were past the bottom
- IEA warns of continued volatility ahead, especially with demand slowing down
Oil prices and commodity-related exchange traded funds have been strengthening as traders bet that producers are cutting back after a period of low energy prices. However, investors should not grow too complacent.
Over the past month, the United States Oil Fund (NYSEArca: USO), which tracks West Texas Intermediate crude oil futures, rose 26.1% while the United States Brent Oil Fund (NYSEArca: BNO), which tracks Brent crude oil futures, gained 27.2%.
WTI crude oil futures were 2.0% higher Friday to $38.6 per barrel, and Brent oil futures were up 0.9% to $40.4 per barrel.
Energy prices continued to gain ground after the International Energy Agency said were past the bottom.
“There are signs that prices might have bottomed out,” the IEA said, reports Holly Ellyatt for CNBC. “For prices there may be light at the end of what has been a long, dark tunnel, but we cannot be precisely sure when in 2017 the oil market will achieve the much-desired balance.”
However, IEA warned of continued volatility ahead, especially with demand slowing down.