Energy ETFs rose slightly today alongside equity market gains
Energy ETFs saw a slight uptick today alongside equity market gains, as the United States Oil Fund ETF (NYSEARCA:USO) rose .47% and the Energy Select Sector SPDR ETF (NYSEARCA:XLE) rose .94%. Energy ETFs likely rose in response to five economic reports released earlier today, which indicated improved unemployment claim numbers, durable goods numbers, industrial production numbers, and a positive number of home sales for September.
Broadly speaking, energy ETFs typically rise with economic activity, as increased economic growth requires more energy. In that sense, it is not surprising that energy ETFs rose to accommodate the better economic reports. From a technical standpoint, NYSEARCA:USO in particular has appeared to consolidate again at the $31.00 level, indicating a possible sideways market and no clear direction for what is next. As markets in general have appeared to level off again after the last few days of blood, it is possible that we may be idling for a while.
The United States Natural Gas Fund LP (NYSEARCA:UNG) ETF must have had a tracking error with its sub index today, as the NYSEARCA:UNG ETF rose only .05%, while the natural gas spot price saw a 9.76% leap to close at $3.78 per cubic foot. Natural gas prices will likely continue to rise as the winter months draw nearer, and NYSEARCA:UNG will likely correct soon and follow along.
Oil ETF Update:
Oil Spot Price: $86.03/barrel, +.44%
United States Oil Fund LP ETF (NYSEARCA:USO): +.47%, This ETF is a commodity based ETF designed to track the price of West Texas Intermediate Crude Oil. The United States Oil Fund LP ETF (NYSEARCA:USO) reflects the price of oil delivered to Cushing, Oklahoma and is traded as futures contracts on The New York Mercantile Exchange (NYMEX).
United States 12 Month Oil Fund LP ETF (NYSEARCA:USL): +.56%, This ETF is a commodity based ETF designed to track the price of West Texas Intermediate Crude Oil. The United States 12 Month Oil Fund LP ETF (NYSEARCA:USO) reflects the price of oil delivered to Cushing, Oklahoma and reflects the average of the next 12 months of oil futures contracts on The New York Mercantile Exchange (NYMEX).
Natural Gas ETF Update:
Natural Gas Spot Price: $3.78/ft3, +9.76%