For investors looking for momentum, Invesco DB Oil Fund (DBO Quick QuoteDBO - Free Report) is probably a suitable pick. The fund just hit a 52-week high and is up 87.6% from its 52-week low price of $10.27/share.

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

DBO in Focus

The Invesco DB Oil fund seeks to track changes, whether positive or negative, in the level of the DBIQ Optimum Yield Crude Oil Index Excess Return (DBIQ Opt Yield Crude Oil Index ER or Index) plus the interest income from the fund's holdings of primarily US Treasury securities and money market income less the fund's expenses. It has AUM of $576 million and charges 77 basis points in annual fees.

Why the Move?

Oil prices have been rallying amid the Russia-Ukraine geopolitical crisis. Russia’s move is leading to a rise in oil prices as it is among the world’s largest suppliers of oil and natural gas. There are other factors as well supporting oil prices. The coronavirus vaccine rollout is gradually helping control the spread of the outbreak across the globe. The optimism surrounding the gradual reopening of global economies and increasing demand is painting a rosy picture for cyclical sectors. President Joe Biden recently announced imposing a ban on Russian oil imports in one such attempt. This is making funds like DBO an attractive investment option.

More Gains Ahead?

It seems like the fund will remain strong, with a positive weighted alpha of 63.83, which gives cues of a further rally.