Investors seeking momentum may have iPath S&P GSCI Crude Oil Index ETN on radar now. The fund recently hit a new 52-week high. Shares of OIL are up approximately 70.1% from its 52-week low of $4.45/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.
OIL in Focus
OIL 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. OIL charges 75 basis points in fee per year and has AUM of $584.0 million (see all Energy ETFs here).
Why the Move?
WTI crude prices rose to reach a more than 3-year high. Increased geopolitical tensions led to the steep increase. President Donald Trump threatened Russia of striking missiles on its ally Syria, in response to Russian ambassador’s threat to strike down any American crafts attacking Syria. Moreover, Saudi air defense forces intercepted at least three ballistic missiles fired by Yemen's Houthis, aimed at Saudi cities, fueling the crude’s rally.
More Gains Ahead?
OIL has a weighted alpha of 40.20. So, there is a promising outlook for those who want to ride this surging ETF a shade further.
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