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Oil ETF (USL) Hits New 52-Week High

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For investors seeking momentum, United States 12 Month Oil Fund (USL - Free Report) ) is probably on radar now. The fund just hit a 52-week high and is up around 52% from its 52-week low price of $17.61/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:

USL in Focus

It tracks the track the price movement of West Texas Intermediate (WTI) light, sweet crude oil. It primarily invests in listed crude oil futures contracts and other related oil contracts as well as in forwards and swap contracts. It charges 86 bps in fees per year (see: all Energy ETFs here).

Why the Move?

The decline in U.S. inventories has led to a surge in oil prices. A recent meeting of OPEC and its allies ended without sanctioning increasing oil output in spite of President Trump’s call for reduced prices, possibly leading to more upheaval in prices in the near future.

More Gains Ahead?

It seems that USL will continue to perform well in the near future given a positive weighted alpha of 45.50. A 20-day historical volatility of 16.76% indicates that vigilance is required on the part of investors.

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