Investors shouldn’t forget about the demand side either, especially with a growing global economy. Citigroup projects a greater likelihood of persistent shortage of oil than a big jump in supply over the coming quarters.
“Moreover, there is a group of large oil companies that are now in a place where they can cut costs and rake in cash, having completed a series of large-scale projects in recent years,” according to OilPrice. com. “Royal Dutch Shell, BP and Total all grew heavily in recent years, and are now looking to cash in on those investments. For them, things are on the upswing.”
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