Market Observers See Upside for E&P ETFs

First, there has been little in the way of significant output reductions from the world’s major oil-producing nations. Second, even if dramatic output reductions arrive, some energy market observers see the impact as being negligible for energy equities and ETFs.

Related: Oil ETF Bears Continue Aggressive Forecasts

“While we continue to believe the near-term commodity path will be volatile and a pullback is likely, we have confidence the oil market recovery is occurring and oil prices will need to be higher ($80) to deliver the production growth the world will need,” according to Morgan Stanley.

Other ETFs with exploration and production exposure include the PowerShares Dynamic Energy Exploration & Production Portfolio (NYSEArca: PXE) and the Guggenheim S&P Equal Weight Energy ETF (NYSEArca: RYE).

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SPDR S&P Oil & Gas Exploration & Production ETF