October was extremely choppy for oil prices. After hovering at triple-digits levels for the first half of the year, oil prices are now trading at multi-year lows. Increased supplies resulting in abundant inventory, strength in the greenback, slower manufacturing activities in the Euro zone – a net oil importer – and a sluggish Chinese economy pushed the oil prices lower despite moderate threats of supply disruption from the ongoing turmoil in Iraq.
Amid tensions, Saudi Arabia – which boasts a three-decade high output – currently plans to offer oil to the U.S. at discounted prices. This posed another round of threats to the already suffering oil prices. Brent crude oil dipped to $82 a barrel on November 6 while U.S. crude was down 1.3% to $77.63 on the same day. In fact, Brent's value plunged about 30% since June (read: 4 Inverse ETFs to Short Oil as Crude Prices Tumble).
OPEC slashed the demand outlook for oil too by reducing its estimates through 2035 barring 2015. The fall in demand could be as acute as the 14-year low in 2017, per the group. Likely start of production in Libya after a prolonged unrest is another threat to energy prices. While pressure had mounted in the conventional energy field, the oil crash and its ripples also played a key role in holding back returns in the clean energy space.
Clean Energy ETFs in Focus
No clean energy ETF added more than 4% in the last one month. Year to date, only two products Market Vectors Global Alternative Energy ETF (GEX) and Global Clean Energy Portfolio (PBD) returned positively, those too with minor returns.
The space was a huge gainer last year ...
/www.benzinga.com/trading-ideas/14/11/5007965/clean-energy-etfs-losers-of-the-crude-oil-crash alt=Clean Energy ETFs: Losers Of The Crude Oil Crash?>Full story available on Benzinga.com
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