Oil Opportunity With These ETFs

November can be a tricky month for the energy sector, but astute investors can still capture potential upside with exchange traded funds such as the SPDR S&P Oil & Gas Exploration & Production ETF (NYSEArca: XOP), the largest ETF focusing on exploration and production companies.

Plenty of skeptics remain regarding oil’s fundamental outlook. There might be something to that skepticism as many of the world’s major ex-U.S. producers of oil have not displayed a willingness to pare production. Even the output reductions in the U.S. have been modest. The good news is U.S. shale output is slightly declining, but challenges remain on the output front from OPEC producers.

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).

SEE MORE: OPEC Output Freeze Speculation Lift Oil, Energy ETFs

The United States Oil Fund (NYSEArca: USO), which tracks West Texas Intermediate crude oil futures, is among the more popular avenues for tapping oil futures.

Some oil market observers believe the commodity can continue rallying, perhaps to $70 per barrel, implying significant upside from Tuesday’s close at $49.33 per barrel. Looking ahead, the Organization of Petroleum Exporting Countries will consider agreeing on output cuts for most members when the group’s energy  ministers meet on November 30.