COM - Energy focused ETFs falter as oil drops 5%

2023-05-02 14:33:55 ET

Energy focused exchange traded funds found themselves trading to the downside on Tuesday afternoon as crude ( CL1:COM ) prices dropped 5.1% .

Oil fell below the $72 per barrel marker as it now trades at levels not seen since March 27th due in part to continued concerns around the state of the economy. Oil slumped as investors raise concerns about a U.S. debt default and acknowledge that a rise in central bank rates around the world can cool off demand for the commodity.

See below a grouping of ETFs that offer exposure directly to the spot price of crude along with their daily price action:

• US Brent Oil ( BNO ) -5.3% .
• US Oil Fund ( NYSEARCA: USO ) -5% .
• Invesco DB Oil Fund ETF ( DBO ) -4.7% .
• ProShares Ultra Bloomberg Crude Oil ETF ( NYSEARCA: UCO ) -9.5% .

Aside from spot focused oil ETFs, other broad energy exchange traded funds that seek exposure to oil services, equipment, and drilling companies are also in the red.

• Energy Select Sector SPDR Fund ETF ( NYSEARCA: XLE ) -4.4% .
• Vanguard Energy Index Fund ETF ( NYSEARCA: VDE ) -4.4% .
• US Oil Equipment & Services iShares ETF ( IEZ ) -5.9% .
• S&P Oil & Gas Eqpt & Services SPDR ( XES ) -5.8% .
• Vaneck Oil Services ETF ( OIH ) -5.7% .

Tuesday’s decline furthered the move that was observed in the sector last week which sent oil below its 100-day moving average as it erased all of the gains seen in April.

For further details see: