Oil ETFs Near Oversold Levels

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Oil ETFs near oversold levels alongside declining equity markets

oil Oil ETFs Near Oversold LevelsOil ETFs and oil prices continue to decline alongside equity markets as demand for oil and energy wanes.  The oil spot price closed at $85.65 per barrel with a 1.06% decline, while the United States Oil Fund LP ETF (NYSEARCA:USO) dropped 1.06% and the iPath S&P GSCI Crude Oil Total Return Index ETF (NYSEARCA:OIL) dropped .96% as well.

Oil ETFs, like gold ETFs, have been following equity markets into the red, as oil prices typically rise with rising markets and growing economies, and fall with declining markets and slowing economies.  Since growing economies need more energy, oil prices typically fluctuate with economic growth and contraction.  Despite the fact however that oil prices have followed the recent demise of equities, oil prices and oil ETFs are due for an upswing soon, as both NYSEARCA:USO and NYSEARCA:OIL have nearly reached oversold levels of ’30′ on their RSI readings.  A security typically bounces off of the ’30′ mark or if it does break ’30,’ typically comes back quickly, so the fact that oil ETFs are nearing oversold levels at the ’30′ mark suggest that oil ETFs will rebound soon.

Natural gas ETFs declined as well today, as the United States Natural Gas Fund ETF (NYSEARCA:UNG) lost 2.07% while the natural gas spot price lost 2.05% to close at $3.44 per cubic foot.  Natural gas ETFs and natural gas prices likely corrected today as well after yesterday’s 2% gains.

Oil ETF Update:

Oil Spot Price: $85.65/barrel, -1.06%

United States Oil Fund LP ETF (NYSEARCA:USO):  -1.06%, 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):  -1.02%, 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: $3.44/ft3, -2.05%

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