The Direxion Daily S&P Oil & Gas Exploration & Production Bear Shares (NYSEArca: DRIP) takes the -3x, or -300%, daily performance of the S&P Oil & Gas Exploration & Production Select Industry Index, the same index tracked by XOP.
XOP’s near-term outlook revolves around production cuts and whether those cuts arrive or not.
“If the major oil producers fail to reach an agreement next month, or if Saudi Arabia spooks the market by saying that it will continue pumping close to record quantities of oil, then it could drag oil prices. The increase in oil prices we’ve seen this month could evaporate in September,” adds Seeking Alpha.
For more information on Energy ETFs, visit our Energy category.
SPDR S&P Oil & Gas Exploration & Production ETF