“Refiners would almost certainly start looking to increase domestic oil usage. Which would boost prices for U.S. products like West Texas Intermediate relative to global blends like Brent — due both to actual demand as well as speculative buying from investors jumping on the trend,” according to OilPrice.
Stabilizing crude oil prices and potential production cutbacks from major oil producers could help support sector-related exchange traded funds.
A primary reason for the recent bullishness regarding crude is the production cut announced earlier this month by the Organization of Petroleum Exporting Countries (OPEC). OPEC plans to diminish output to a range of 32.5 to 33.0 million barrels per day from its current estimated output of 33.24 million barrels per day.
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