Furthermore, the markets have been receiving mixed signals regarding supply. Factors such as the U.S. possibly tapping into emergency reserves from its Strategic Petroleum Reserve and whether Libya can rebound from its own oil production levels amid military clashes continue to confound oil traders.
Additionally, U.S. Treasury Secretary Steve Mnuchin backed off earlier Iranian sanctions that were intended to cut Iran oil purchases to zero or face stiff U.S. sanctions. Mnuchin announced that oil buyers who were unable to meet the Nov. 4 deadline to trim Iranian crude purchases to zero would receive an extension.
Related: Oil ETFs Wobble on Supply Outlook
“It’s sort of like a piling on now at this point in terms of increased production from the Saudis, from the Russians, from Libya,” said John Kilduff, founding partner at energy hedge fund Again Capital. “We’ve just gone through support levels like a hot knife through butter, $70 and now $68. The main level really now is that $64 low from last month,” he told CNBC.
For more market trends affecting oil ETFs, visit ETFTrends.com.