WTI Oil ETF (DBO) Hits a New 52-Week High
Investors seeking momentum may have PowerShares DB Oil Fund DBO on radar now. The fund recently hit a new 52-week high. Shares of DBO are up approximately 50.5% 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 $342.1 million (see all Energy ETFs here).
Why the move?
WTI crude prices reached its highest level since December 2014 and crossed $66 a barrel on Wednesday. OPEC production cuts coupled with a fall in U.S. stockpiles made this possible. Coming to the crude inventory data in the United States, inventories fell around 1.1 million barrels in the week to January 19, 2018 to 411.6 million barrels. Moreover, a falling greenback has also provided support to the fund, as it generally leads to reallocation of assets from currencies to commodities.
More Gains Ahead?
DBO has a weighted alpha of 31.00. So, there is a promising outlook ahead for those who want to ride this surging ETF a shade further.
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PWRSH-DB OIL FD (DBO): ETF Research Reports
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