While the global oil supply glut has not diminished as quickly as previously anticipated, global oil inventories are still slowly falling and we may see a rebalancing of supply and demand in the second half of the year. That could weigh on DRIP while bringing good fortune for GUSH.
Related: Conditions Are Looking Up for Oil ETFs
Still, supply remains an issue and one that does not show many signs of abating in the near-term. Meanwhile, advances in U.S. shale oil production technologies are contributing the to supply surplus and weighing on any oil price gains. It has become much cheaper for the upstart U.S. shale producers to extract oil out of the ground, but the growth rate of U.S. oil product has also recently slowed.
DRIP is down 7% over the past week.
For more news on oil ETFs, visit our oil category.