For investors seeking momentum, SPDR S&P Oil & Gas Equipment & Services ETF (XES Quick QuoteXES - Free Report) is probably on radar. The fund just hit a 52-week high and is up about 82% from its 52-week low price of $51.63/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:

XES in Focus

SPDR S&P Oil & Gas Equipment & Services ETF seeks to provide exposure to the oil and gas equipment and services segment with key holdings in oil & gas equipment & services, and oil & gas drilling. It charges investors 35 basis points a year in fees (see: all the Energy ETFs here).

Why the Move?

The energy sector has been an area to watch lately, given the rise in oil prices. A tightening oil market fueled by surging crude demand and supply reductions by major OPEC+ players, Saudi Arabia and Russia, has been driving the oil price surge. Additionally, a decline in inventories at the largest U.S. storage hub has led to a bullish pricing pattern known as backwardation (where later-dated contracts are cheaper than near-term contracts in the oil futures market) in WTI's nearest two contracts. This signals that the oil market is tightening and demand is robust, paving the way for an oil rally.

More Gains Ahead?

Currently, XES has a Zacks ETF Rank #3 (Hold) with a High risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, many segments that make up this ETF have a strong Zacks Industry Rank. So, there is definitely some promise for those who want to ride this surging ETF a little further.