Underscoring the recent bullishness from energy prices, the United States Oil Fund LP (ETF) (NYSE: USO) is up 22.6 percent over the past month. Energy equities are delivering impressive returns as well, as the Energy Select Sector SPDR (ETF) (NYSE: XLE) is higher by 11.7 percent over the same period.
Still, supplies show only modest signs of dwindling, energy earnings estimates for 2016 are contracting, market observers expect oil supply to continue outpacing demand, and it would appear next year could be another rocky one for exploration and production equities.
Energy's Future
While considerable debate remains regarding the near- to mid-term future for energy equities and ETFs such as XLE, what is not arguable is that oil's recent surge has been meaningful for leveraged energy ETFs. Last week, leveraged funds, such as the Direxion Daily Natural Gas Related Bear 3x Shares (NYSE: GASX) saw volume explosions.
/www.benzinga.com/trading-ideas/long-ideas/16/03/7703525/oil-rally-sparks-increased-turnover-in-leveraged-energy-etfs alt=Oil Rally Sparks Increased Turnover In Leveraged Energy ETFs>Full story available on Benzinga.com
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