Oil’s choppy trading s of late has largely been the result of a mix of geopolitical forces and supply disruptions. In addition to the ongoing trade wars roiling the capital markets, supply disruptions in Venezuela continued as two of the country’s four crude upgraders will undergo maintenance the next few weeks. Even with that, GUSH is up 4.63% over the past month, underscoring the strength in this segment of the energy patch.
“Now Saudi Arabia is offering extra oil to some of their Asian customers, presumably as a gesture to the U.S. leader. In addition, with some help from Russia, Trump may succeed at lowering prices,” according to Direxion.
Lower prices could open the door for GUSH’s bearish counterpart, the Direxion Daily S&P Oil & Gas Exploration & Production Bear 3x Shares (NYSEArca: DRIP), which takes the -3x or -300% daily performance of the S&P Oil & Gas Exploration & Production Select Industry Index.
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