For investors looking for momentum, SPDR S&P Oil & Gas Exploration & Production ETF (XOP Quick QuoteXOP - Free Report) is probably a suitable pick. The fund just hit a 52-week high and is up about 170% from its 52-week low price of $29.48/share.

Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:

XOP in Focus

The underlying S&P Oil & Gas Exploration & Production Select Industry Index represents the oil and gas exploration and production sub-industry portion of the S&P Total Markets Index. It has AUM of $2.95 billion and charges 35 basis points in annual fees.

Why the Move?

A freezing weather in the United States has instigated the oil rally. Winter storm and arctic blast of cold weather is having some severe impacts on the oil industry. U.S. oil supply remained stressed due to a deep freeze in the U.S. South which has hurt power supply, and in turn curtailed about 500,000 to 1.2 million barrels per day (bpd) of crude production in the Permian Basin in Texas. Such cold snap and the resultant adverse impact on the oil patch has boosted energy ETFs lately.

More Gains Ahead?

It seems like the fund will remain strong, with a positive weighted alpha of 45.48, which gives cues of further rally. However, the fund has a Zacks Rank #3 (Hold).

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