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WTI Oil ETF (DBO) Hits New 52-Week High

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Investors seeking momentum may have PowerShares DB Oil Fund (DBO - Free Report) on radar now. The fund recently hit a new 52-week high. Shares of DBO are up approximately 51.9% from their 52-week low of $7.40/share.

But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.

DBO in Focus

DBO focuses on providing exposure to the price movements of WTI Crude oil, the most popular benchmark for crude oil. This fund invests in listed crude oil futures contracts. DBO charges 75 basis points in fee per year and has AUM of $398.3 million (see all Energy ETFs here).

Why the move?

WTI crude prices gained momentum and reached $66 a barrel on Friday. Increased geopolitical tension led to this steep increase. Investors expect the United States to withdraw from the Iran nuclear deal, after John Bolton was appointed as national security adviser. This could bring back sanctions on Iran and weigh on its capability to export crude oil to the market. Moreover, possibility of increased tensions between Iran and Saudi Arabia also contributed to crude’s rally.

More Gains Ahead?

DBO has a weighted alpha of 39.40. So, there is a promising outlook ahead for those who want to ride this surging ETF a shade further.

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