Last week, oil prices surged to their highest levels since late 2014 amid increasing demand, rising geopolitical risks and speculations that Trump administration could withdraw from the Iran nuclear deal.

The US has to decide about its position on the deal by May 12. Breakdown of the 3-year old nuclear agreement with Iran could lead to re-imposition of sanctions on the country and further spike in oil prices.

Iran has the fourth largest oil reserves in the world. In the past. sanctions had curbed Iranian oil imports significantly.

Also, OPEC had put in place production cuts about 18 months back to support falling oil prices. They have affirmed their commitment to the cuts and it appears that those cuts are finally working as inventories have come down and prices have been increasing.

Demand for oil has also been rising thanks to global synchronized growth. Additionally, rising geopolitical risks in the Middle East have boosted oil prices.

If you are expecting a continuation of the uptrend, you can either buy energy equity ETFs or you can invest in ETFs/ETNs that track commodity prices.

In the short video above, we have highlighted three best performing energy equity ETFs of 2018. The best performing ETF is the iShares U.S. Oil & Gas Exploration & Production ETF (IEO Quick QuoteIEO - Free Report) , which is up about 9% this year.

To learn more about this ETF and the other two outperformers—the PowerShares DWA Energy Momentum Portfolio (PXI Quick QuotePXI - Free Report) and the First Trust Nasdaq Oil & Gas ETF (FTXN Quick QuoteFTXN - Free Report) , please watch the video.

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